Dollar General (DG) closed at $132.12 in the latest trading session, marking a -1.54% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.58% for the day. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.05%.
Prior to today's trading, shares of the discount retailer had gained 9.43% outpaced the Retail-Wholesale sector's gain of 4.75% and the S&P 500's gain of 0.97%.
The investment community will be paying close attention to the earnings performance of Dollar General in its upcoming release. The company's upcoming EPS is projected at $1.39, signifying a 8.59% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $11.13 billion, indicating a 4.51% upward movement from the same quarter last year.
DG's full-year Zacks Consensus Estimates are calling for earnings of $7.94 per share and revenue of $44.55 billion. These results would represent year-over-year changes of +15.91% and +4.27%, respectively.
Investors should also note any recent changes to analyst estimates for Dollar General. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. Currently, Dollar General is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Dollar General is holding a Forward P/E ratio of 16.91. This represents a discount compared to its industry average Forward P/E of 21.73.
Investors should also note that DG has a PEG ratio of 1.78 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant 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 Report
This article originally published on Zacks Investment Research (zacks.com).