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Why the Market Dipped But Dollar General (DG) Gained Today

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The most recent trading session ended with Dollar General (DG - Free Report) standing at $125.68, reflecting a +0.16% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.2%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.07%.

The the stock of discount retailer has risen by 5.16% in the past month, lagging the Retail-Wholesale sector's gain of 8.4% and the S&P 500's gain of 7.49%.

Market participants will be closely following the financial results of Dollar General in its upcoming release. The company plans to announce its earnings on December 7, 2023. The company's earnings per share (EPS) are projected to be $1.19, reflecting a 48.93% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.67 billion, reflecting a 2.13% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.45 per share and a revenue of $38.63 billion, indicating changes of -30.24% and +2.08%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Dollar General. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.31% higher within the past month. At present, Dollar General boasts a Zacks Rank of #4 (Sell).

Investors should also note Dollar General's current valuation metrics, including its Forward P/E ratio of 16.84. This signifies a discount in comparison to the average Forward P/E of 24.02 for its industry.

We can additionally observe that DG currently boasts a PEG ratio of 2.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Retail - Discount Stores industry stood at 2.13 at the close of the market yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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