Dollar General (DG) Stock Sinks As Market Gains: Here's Why

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Dollar General (DG) Stock Sinks As Market Gains: Here's Why

Dollar General (DG) closed the most recent trading day at $113.29, moving -2.73% from the previous trading session. This change lagged the S&P 500's daily gain of 0.84%. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq increased by 1.71%.

Shares of the discount retailer witnessed a loss of 2.74% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 11.54%, and the S&P 500's gain of 10.96%.

Analysts and investors alike will be keeping a close eye on the performance of Dollar General in its upcoming earnings disclosure. The company's earnings report is set to go public on June 2, 2026. In that report, analysts expect Dollar General to post earnings of $1.9 per share. This would mark year-over-year growth of 6.74%. Our most recent consensus estimate is calling for quarterly revenue of $10.83 billion, up 3.82% from the year-ago period.

DG's full-year Zacks Consensus Estimates are calling for earnings of $7.28 per share and revenue of $44.42 billion. These results would represent year-over-year changes of +6.28% and +3.98%, respectively.

Investors might also notice recent changes to analyst estimates for Dollar General. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Dollar General is currently a Zacks Rank #3 (Hold).

In the context of valuation, Dollar General is at present trading with a Forward P/E ratio of 16. This denotes a discount relative to the industry average Forward P/E of 27.21.

Meanwhile, DG's PEG ratio is currently 1.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Discount Stores industry stood at 3.06 at the close of the market yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 54, putting it in the top 23% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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