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Should Value Investors Buy Dollar General (DG) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Dollar General (DG - Free Report) is a stock many investors are watching right now. DG is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.89. This compares to its industry's average Forward P/E of 30.00. DG's Forward P/E has been as high as 19.69 and as low as 11.46, with a median of 13.98, all within the past year.
Investors should also note that DG holds a PEG ratio of 2.05. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DG's industry currently sports an average PEG of 3.53. Over the last 12 months, DG's PEG has been as high as 2.91 and as low as 1.96, with a median of 2.29.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DG has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.25.
Value investors will likely look at more than just these metrics, but the above data helps show that Dollar General is likely undervalued currently. And when considering the strength of its earnings outlook, DG sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Dollar General (DG) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Dollar General (DG - Free Report) is a stock many investors are watching right now. DG is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.89. This compares to its industry's average Forward P/E of 30.00. DG's Forward P/E has been as high as 19.69 and as low as 11.46, with a median of 13.98, all within the past year.
Investors should also note that DG holds a PEG ratio of 2.05. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DG's industry currently sports an average PEG of 3.53. Over the last 12 months, DG's PEG has been as high as 2.91 and as low as 1.96, with a median of 2.29.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DG has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.25.
Value investors will likely look at more than just these metrics, but the above data helps show that Dollar General is likely undervalued currently. And when considering the strength of its earnings outlook, DG sticks out as one of the market's strongest value stocks.