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

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In the latest market close, Dollar General (DG - Free Report) reached $142.49, with a +0.7% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.6%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.92%.

The the stock of discount retailer has risen by 4.95% in the past month, lagging the Retail-Wholesale sector's gain of 5.07% and overreaching the S&P 500's gain of 3.56%.

Market participants will be closely following the financial results of Dollar General in its upcoming release. The company plans to announce its earnings on March 14, 2024. The company's earnings per share (EPS) are projected to be $1.73, reflecting a 41.55% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $9.77 billion, down 4.28% from the prior-year quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. Dollar General presently features a Zacks Rank of #3 (Hold).

Investors should also note Dollar General's current valuation metrics, including its Forward P/E ratio of 19.03. For comparison, its industry has an average Forward P/E of 22.16, which means Dollar General is trading at a discount to the group.

We can also see that DG currently has a PEG ratio of 2.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Discount Stores industry currently had an average PEG ratio of 2.12 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 35% of all industries, numbering over 250.

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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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