Dollar General (DG - Free Report) closed the most recent trading day at $132.65, moving -0.78% from the previous trading session. This change was narrower than the S&P 500's 2.98% loss on the day. Meanwhile, the Dow lost 2.9%, and the Nasdaq, a tech-heavy index, lost 3.47%.
Prior to today's trading, shares of the discount retailer had lost 3.88% over the past month. This has lagged the Retail-Wholesale sector's loss of 2.56% and the S&P 500's loss of 1.28% in that time.
Investors will be hoping for strength from DG as it approaches its next earnings release. In that report, analysts expect DG to post earnings of $1.58 per share. This would mark year-over-year growth of 3.95%. Our most recent consensus estimate is calling for quarterly revenue of $6.89 billion, up 6.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.47 per share and revenue of $27.52 billion. These totals would mark changes of +8.38% and +7.38%, respectively, from last year.
Any recent changes to analyst estimates for DG should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. DG currently has a Zacks Rank of #3 (Hold).
Investors should also note DG's current valuation metrics, including its Forward P/E ratio of 20.67. For comparison, its industry has an average Forward P/E of 20.67, which means DG is trading at a no noticeable deviation to the group.
We can also see that DG currently has a PEG ratio of 1.89. 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 industry had an average PEG ratio of 1.88 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.