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Dollar General (DG) Stock Sinks As Market Gains: What You Should Know

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The most recent trading session ended with Dollar General (DG - Free Report) standing at $100.98, reflecting a -0.4% shift from the previouse trading day's closing. This change lagged the S&P 500's 2.05% gain on the day. Meanwhile, the Dow experienced a rise of 1.78%, and the technology-dominated Nasdaq saw an increase of 2.47%.

The discount retailer's stock has climbed by 9.66% in the past month, exceeding the Retail-Wholesale sector's gain of 4.47% and the S&P 500's gain of 5.21%.

Investors will be eagerly watching for the performance of Dollar General in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on June 3, 2025. The company is predicted to post an EPS of $1.47, indicating a 10.91% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $10.28 billion, reflecting a 3.69% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $5.58 per share and a revenue of $42.15 billion, demonstrating changes of -5.74% and +3.78%, respectively, from the preceding year.

Investors might also notice recent changes 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

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 moved 0.42% higher. Right now, Dollar General possesses a Zacks Rank of #3 (Hold).

Investors should also note Dollar General's current valuation metrics, including its Forward P/E ratio of 18.17. This denotes a discount relative to the industry's average Forward P/E of 21.44.

We can additionally observe that DG currently boasts a PEG ratio of 2.63. 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 Retail - Discount Stores industry had an average PEG ratio of 2.64 as trading concluded yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 40% echelons 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.

To follow DG in the coming trading sessions, be sure to utilize Zacks.com.


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