In the latest trading session, Dollar General (DG - Free Report) closed at $181.73, marking a -0.72% move from the previous day. This change was narrower than the S&P 500's 2.05% loss on the day. At the same time, the Dow lost 1.89%, and the tech-heavy Nasdaq lost 2.07%.
DG will be looking to display strength as it nears its next earnings release, which is expected to be May 28, 2020. On that day, DG is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 12.84%. Our most recent consensus estimate is calling for quarterly revenue of $7.36 billion, up 11.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.46 per share and revenue of $30.23 billion. These totals would mark changes of +10.85% and +8.92%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for DG. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. DG is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that DG has a Forward P/E ratio of 24.54 right now. Its industry sports an average Forward P/E of 27.6, so we one might conclude that DG is trading at a discount comparatively.
Meanwhile, DG's PEG ratio is currently 2.01. 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. The Retail - Discount Stores was holding an average PEG ratio of 2.86 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.