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Dollar General (DG) Outpaces Stock Market Gains: What You Should Know

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Dollar General (DG - Free Report) closed the latest trading day at $87.70, indicating a +0.98% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.1%. Meanwhile, the Dow experienced a drop of 0.21%, and the technology-dominated Nasdaq saw an increase of 0.72%.

Prior to today's trading, shares of the discount retailer had lost 1.79% over the past month. This has lagged the Retail-Wholesale sector's gain of 10.27% and the S&P 500's gain of 9.86% in that time.

The investment community will be closely monitoring the performance of Dollar General in its forthcoming earnings report. The company is scheduled to release its earnings on June 3, 2025. On that day, Dollar General is projected to report earnings of $1.46 per share, which would represent a year-over-year decline of 11.52%. Our most recent consensus estimate is calling for quarterly revenue of $10.26 billion, up 3.48% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.56 per share and a revenue of $42.1 billion, signifying shifts of -6.08% and +3.67%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Dollar General. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Dollar General is currently a Zacks Rank #3 (Hold).

In the context of valuation, Dollar General is at present trading with a Forward P/E ratio of 15.63. This represents a discount compared to its industry's average Forward P/E of 22.03.

We can also see that DG currently has a PEG ratio of 2.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Retail - Discount Stores industry stood at 2.55 at the close of the market yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 38% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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