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Dollar General (DG) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Dollar General (DG - Free Report) closed at $102.38, marking a -2.54% move from the previous day. This move lagged the S&P 500's daily loss of 1.24%. Elsewhere, the Dow saw a downswing of 1.07%, while the tech-heavy Nasdaq depreciated by 1.54%.

The discount retailer's stock has dropped by 14.92% in the past month, falling short of the Retail-Wholesale sector's gain of 1.62% and the S&P 500's gain of 7.72%.

The investment community will be paying close attention to the earnings performance of Dollar General in its upcoming release. The company is slated to reveal its earnings on June 2, 2026. The company's earnings per share (EPS) are projected to be $1.9, reflecting a 6.74% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.83 billion, up 3.82% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.28 per share and a revenue of $44.42 billion, representing changes of +6.28% and +3.98%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dollar General. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Dollar General is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Dollar General is presently being traded at a Forward P/E ratio of 14.43. This expresses a discount compared to the average Forward P/E of 25.96 of its industry.

We can also see that DG currently has a PEG ratio of 1.7. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Discount Stores industry had an average PEG ratio of 2.9 as trading concluded yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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