Why Dollar General (DG) Outpaced the Stock Market Today

The most recent trading session ended with Dollar General (DG) standing at $77.09, reflecting a +1.59% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.39% gain on the day. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.6%.The discount retailer's stock has dropped by 5.86% in the past month, falling short of the Retail-Wholesale sector's gain of 1.99% and the S&P 500's gain of 1.06%.The upcoming earnings release of Dollar General will be of great interest to investors. The company's earnings report is expected on December 5, 2024. On that day, Dollar General is projected to report earnings of $0.98 per share, which would represent a year-over-year decline of 22.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.13 billion, up 4.54% from the year-ago period.For the full year, the Zacks Consensus Estimates project earnings of $5.86 per share and a revenue of $40.51 billion, demonstrating changes of -22.38% and +4.71%, respectively, from the preceding year.It is also important to note the recent changes to analyst estimates for Dollar General. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% upward. Dollar General is holding a Zacks Rank of #2 (Buy) right now.Looking at valuation, Dollar General is presently trading at a Forward P/E ratio of 12.95. This denotes a discount relative to the industry's average Forward P/E of 19.78.We can also see that DG currently has a PEG ratio of 2.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. DG's industry had an average PEG ratio of 2.32 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 148, putting it in the bottom 42% 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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dollar General Corporation (DG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks