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Dollar General (DG) Increases Yet Falls Behind Market: What Investors Need to Know

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Dollar General (DG - Free Report) closed at $136.68 in the latest trading session, marking a +2.19% move from the prior day. The stock's change was less than the S&P 500's daily gain of 2.35%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 2.74%.

The stock of discount retailer has risen by 5.12% in the past month, lagging the Retail-Wholesale sector's gain of 6.78% and overreaching the S&P 500's loss of 5.6%.

Analysts and investors alike will be keeping a close eye on the performance of Dollar General in its upcoming earnings disclosure. The company's earnings report is set to go public on December 3, 2026. The company is predicted to post an EPS of $1.4, indicating a 9.38% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11.13 billion, indicating a 4.53% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.94 per share and revenue of $44.55 billion. These totals would mark changes of +15.91% and +5.77%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Dollar General. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Dollar General is currently a Zacks Rank #2 (Buy).

In terms of valuation, Dollar General is presently being traded at a Forward P/E ratio of 16.84. This valuation marks a discount compared to its industry average Forward P/E of 20.71.

We can additionally observe that DG currently boasts a PEG ratio of 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 1.91.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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