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Is Dollar General (DG) Stock Undervalued Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.89. This compares to its industry's average Forward P/E of 31.17. Over the last 12 months, DG's Forward P/E has been as high as 19.69 and as low as 11.46, with a median of 13.98.
Investors will also notice that DG has a PEG ratio of 2.05. 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. DG's PEG compares to its industry's average PEG of 3.25. 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 love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.61. This compares to its industry's average P/S of 1.35.
Finally, investors should note that DG has a P/CF ratio of 10.24. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 29.85. DG's P/CF has been as high as 11.93 and as low as 6.61, with a median of 8.66, all within the past year.
These are only a few of the key metrics included in Dollar General's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DG looks like an impressive value stock at the moment.
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Is Dollar General (DG) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.89. This compares to its industry's average Forward P/E of 31.17. Over the last 12 months, DG's Forward P/E has been as high as 19.69 and as low as 11.46, with a median of 13.98.
Investors will also notice that DG has a PEG ratio of 2.05. 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. DG's PEG compares to its industry's average PEG of 3.25. 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 love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.61. This compares to its industry's average P/S of 1.35.
Finally, investors should note that DG has a P/CF ratio of 10.24. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 29.85. DG's P/CF has been as high as 11.93 and as low as 6.61, with a median of 8.66, all within the past year.
These are only a few of the key metrics included in Dollar General's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DG looks like an impressive value stock at the moment.