Dollar General (DG) Stock Moves -0.94%: What You Should Know

In the latest trading session, Dollar General (DG) closed at $231.37, marking a -0.94% move from the previous day. This change was narrower than the S&P 500's 3.2% loss on the day. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Prior to today's trading, shares of the discount retailer had lost 4.98% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 13.6% and the S&P 500's loss of 7.87% in that time.

Investors will be hoping for strength from Dollar General as it approaches its next earnings release, which is expected to be May 26, 2022. The company is expected to report EPS of $2.33, down 17.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.7 billion, up 3.51% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.38 per share and revenue of $37.39 billion. These totals would mark changes of +11.9% and +9.26%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Dollar General. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. Dollar General currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Dollar General is holding a Forward P/E ratio of 20.52. For comparison, its industry has an average Forward P/E of 19.85, which means Dollar General is trading at a premium to the group.

It is also worth noting that DG currently has a PEG ratio of 1.79. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DG's industry had an average PEG ratio of 1.81 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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