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Dollar General (DG) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Dollar General (DG) closed at $220, marking a +0.48% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.05%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, added 6.02%.

Coming into today, shares of the discount retailer had gained 3.06% in the past month. In that same time, the Retail-Wholesale sector gained 1.63%, while the S&P 500 gained 1.18%.

Dollar General will be looking to display strength as it nears its next earnings release, which is expected to be June 1, 2023. The company is expected to report EPS of $2.38, down 1.24% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.47 billion, up 8.19% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.19 per share and revenue of $40.04 billion. These totals would mark changes of +4.78% and +5.79%, respectively, from last year.

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Investors should also note any recent changes to analyst estimates for Dollar General. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 0.02% higher. Dollar General is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Dollar General's current valuation metrics, including its Forward P/E ratio of 19.57. For comparison, its industry has an average Forward P/E of 22.38, which means Dollar General is trading at a discount to the group.

We can also see that DG currently has a PEG ratio of 1.84. 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 2.02 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 177, which puts it in the bottom 30% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Dollar General Corporation (DG) : Free Stock Analysis Report

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