In the latest trading session, Dollar General (DG - Free Report) closed at $181.48, marking a -0.31% move from the previous day. This change was narrower than the S&P 500's 1.05% loss on the day. Elsewhere, the Dow lost 1.59%, while the tech-heavy Nasdaq lost 0.54%.
Investors will be hoping for strength from DG as it approaches its next earnings release, which is expected to be May 28, 2020. In that report, analysts expect DG to post earnings of $1.68 per share. This would mark year-over-year growth of 13.51%. Our most recent consensus estimate is calling for quarterly revenue of $7.37 billion, up 11.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.47 per share and revenue of $30.24 billion, which would represent changes of +11% and +8.97%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for DG. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.01% lower within the past month. DG is currently a Zacks Rank #3 (Hold).
Investors should also note DG's current valuation metrics, including its Forward P/E ratio of 24.38. This represents a discount compared to its industry's average Forward P/E of 28.99.
Meanwhile, DG's PEG ratio is currently 1.99. 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. DG's industry had an average PEG ratio of 3.26 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 8% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.