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Dollar General (DG) Suffers a Larger Drop Than the General Market: Key Insights

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Dollar General (DG - Free Report) closed the latest trading day at $138.79, indicating a -1.15% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the discount retailer had gained 5.21% in the past month. In that same time, the Retail-Wholesale sector gained 6.92%, while the S&P 500 gained 4.74%.

Analysts and investors alike will be keeping a close eye on the performance of Dollar General in its upcoming earnings disclosure. The company's earnings report is set to go public on March 14, 2024. The company is expected to report EPS of $1.74, down 41.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.77 billion, down 4.22% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Dollar General. Recent revisions tend to reflect the latest 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.07% higher. Dollar General is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Dollar General is currently exchanging hands at a Forward P/E ratio of 18.9. This expresses a discount compared to the average Forward P/E of 22.5 of its industry.

We can also see that DG currently has a PEG ratio of 2.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 2.15.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 80, placing it within the top 32% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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