Back to top

Image: Bigstock

Dollar General (DG) Stock Slides as Market Rises: Facts to Know Before You Trade

Read MoreHide Full Article

Dollar General (DG - Free Report) closed at $105.81 in the latest trading session, marking a -1.63% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.02%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.33%.

Coming into today, shares of the discount retailer had lost 6.02% in the past month. In that same time, the Retail-Wholesale sector gained 4.9%, while the S&P 500 gained 4.93%.

Market participants will be closely following the financial results of Dollar General in its upcoming release. The company is forecasted to report an EPS of $1.56, showcasing a 8.24% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $10.67 billion, indicating a 4.52% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $5.77 per share and a revenue of $42.41 billion, demonstrating changes of -2.53% and +4.42%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dollar General. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. Right now, Dollar General possesses a Zacks Rank of #3 (Hold).

Investors should also note Dollar General's current valuation metrics, including its Forward P/E ratio of 18.65. Its industry sports an average Forward P/E of 22.04, so one might conclude that Dollar General is trading at a discount comparatively.

We can additionally observe that DG currently boasts a PEG ratio of 2.63. 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 2.64 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 169, which puts it in the bottom 32% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


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


Dollar General Corporation (DG) - free report >>

Published in