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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Dollar General (DG - Free Report) . DG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.89 right now. For comparison, its industry sports an average P/E of 28.90. 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 should also note that DG holds a PEG ratio of 2.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DG's PEG compares to its industry's average PEG of 2.76. DG's PEG has been as high as 2.91 and as low as 1.96, with a median of 2.29, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DG has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.21.
Finally, investors will want to recognize that DG has a P/CF ratio of 10.24. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DG's current P/CF looks attractive when compared to its industry's average P/CF of 27.86. Over the past 52 weeks, DG's P/CF has been as high as 11.93 and as low as 6.61, with a median of 8.66.
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Dollar General (DG - Free Report) . DG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.89 right now. For comparison, its industry sports an average P/E of 28.90. 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 should also note that DG holds a PEG ratio of 2.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DG's PEG compares to its industry's average PEG of 2.76. DG's PEG has been as high as 2.91 and as low as 1.96, with a median of 2.29, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DG has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.21.
Finally, investors will want to recognize that DG has a P/CF ratio of 10.24. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DG's current P/CF looks attractive when compared to its industry's average P/CF of 27.86. Over the past 52 weeks, DG's P/CF has been as high as 11.93 and as low as 6.61, with a median of 8.66.
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.