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Dollar General (DG) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Dollar General (DG - Free Report) closed at $148.74, marking a -1.97% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq decreased by 0.06%.
Coming into today, shares of the discount retailer had gained 11.01% in the past month. In that same time, the Retail-Wholesale sector gained 5.39%, while the S&P 500 gained 1.99%.
The upcoming earnings release of Dollar General will be of great interest to investors. On that day, Dollar General is projected to report earnings of $1.58 per share, which would represent a year-over-year decline of 5.95%. Meanwhile, our latest consensus estimate is calling for revenue of $10.75 billion, up 4.28% from the prior-year quarter.
DG's full-year Zacks Consensus Estimates are calling for earnings of $6.48 per share and revenue of $42.56 billion. These results would represent year-over-year changes of +9.46% and +4.79%, respectively.
Investors should also note any recent changes to analyst estimates for Dollar General. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Dollar General is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Dollar General is currently trading at a Forward P/E ratio of 23.42. Its industry sports an average Forward P/E of 29.94, so one might conclude that Dollar General is trading at a discount comparatively.
Also, we should mention that DG has a PEG ratio of 2.76. 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 Retail - Discount Stores was holding an average PEG ratio of 3.28 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Dollar General (DG) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Dollar General (DG - Free Report) closed at $148.74, marking a -1.97% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq decreased by 0.06%.
Coming into today, shares of the discount retailer had gained 11.01% in the past month. In that same time, the Retail-Wholesale sector gained 5.39%, while the S&P 500 gained 1.99%.
The upcoming earnings release of Dollar General will be of great interest to investors. On that day, Dollar General is projected to report earnings of $1.58 per share, which would represent a year-over-year decline of 5.95%. Meanwhile, our latest consensus estimate is calling for revenue of $10.75 billion, up 4.28% from the prior-year quarter.
DG's full-year Zacks Consensus Estimates are calling for earnings of $6.48 per share and revenue of $42.56 billion. These results would represent year-over-year changes of +9.46% and +4.79%, respectively.
Investors should also note any recent changes to analyst estimates for Dollar General. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Dollar General is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Dollar General is currently trading at a Forward P/E ratio of 23.42. Its industry sports an average Forward P/E of 29.94, so one might conclude that Dollar General is trading at a discount comparatively.
Also, we should mention that DG has a PEG ratio of 2.76. 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 Retail - Discount Stores was holding an average PEG ratio of 3.28 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.