The latest trading session saw Dollar General (DG) ending at $74.13, denoting a -0.01% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Prior to today's trading, shares of the discount retailer had gained 3.56% over the past month. This has lagged the Retail-Wholesale sector's gain of 9.07% and the S&P 500's gain of 4.19% in that time.
Investors will be eagerly watching for the performance of Dollar General in its upcoming earnings disclosure. The company is expected to report EPS of $1.50, down 18.03% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $10.26 billion, indicating a 4.11% upward movement from the same quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dollar General. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.38% higher. As of now, Dollar General holds a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Dollar General has a Forward P/E ratio of 12.4 right now. This denotes a discount relative to the industry's average Forward P/E of 19.61.
We can additionally observe that DG currently boasts a PEG ratio of 2.12. 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 2.12 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 39, positioning it in the top 16% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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