Back to top

Image: Bigstock

Dollar General Corporation

Read MoreHide Full Article

Although shares of Dollar General have risen and outpaced the industry in the past three months, they may derail in the near future. In spite of reporting decent third-quarter fiscal 2018 results, management trimmed fiscal 2018 earnings view citing "greater-than-anticipated expenses" related to hurricanes and higher transportation costs. Moreover, any deleverage in SG&A rate might impact margins. Also, increasing threat from online retailers on parameters such as pricing cannot be ignored. Not to forget, a cut in SNAP benefit may also weigh on the performance. Nevertheless, better pricing, private label offering, effective inventory management, and merchandise and operational initiatives bode well. These along with a compelling store growth story at convenient locations and focus on consumable products provides an edge. Contribution from new outlets and comparable-store sales growth favorably impacted the top line.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Dollar General Corporation (DG) - free report >>

Published in