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Dollar General (DG) Stock Sinks As Market Gains: What You Should Know
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Dollar General (DG - Free Report) closed the most recent trading day at $165.66, moving -1.75% from the previous trading session. This change lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 5.61%.
Prior to today's trading, shares of the discount retailer had gained 4% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.78% and the S&P 500's gain of 3.18% in that time.
Investors will be hoping for strength from Dollar General as it approaches its next earnings release. On that day, Dollar General is projected to report earnings of $2.50 per share, which would represent a year-over-year decline of 16.11%. Meanwhile, our latest consensus estimate is calling for revenue of $9.94 billion, up 5.47% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.03 per share and revenue of $39.31 billion, which would represent changes of -6.09% and +3.86%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Dollar General. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. Dollar General is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note Dollar General's current valuation metrics, including its Forward P/E ratio of 16.81. Its industry sports an average Forward P/E of 23.9, so we one might conclude that Dollar General is trading at a discount comparatively.
It is also worth noting that DG currently has a PEG ratio of 1.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 2.16 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DG in the coming trading sessions, be sure to utilize Zacks.com.
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Dollar General (DG) Stock Sinks As Market Gains: What You Should Know
Dollar General (DG - Free Report) closed the most recent trading day at $165.66, moving -1.75% from the previous trading session. This change lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 5.61%.
Prior to today's trading, shares of the discount retailer had gained 4% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.78% and the S&P 500's gain of 3.18% in that time.
Investors will be hoping for strength from Dollar General as it approaches its next earnings release. On that day, Dollar General is projected to report earnings of $2.50 per share, which would represent a year-over-year decline of 16.11%. Meanwhile, our latest consensus estimate is calling for revenue of $9.94 billion, up 5.47% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.03 per share and revenue of $39.31 billion, which would represent changes of -6.09% and +3.86%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Dollar General. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. Dollar General is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note Dollar General's current valuation metrics, including its Forward P/E ratio of 16.81. Its industry sports an average Forward P/E of 23.9, so we one might conclude that Dollar General is trading at a discount comparatively.
It is also worth noting that DG currently has a PEG ratio of 1.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 2.16 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DG in the coming trading sessions, be sure to utilize Zacks.com.