DG Promotions arrived after earnings – what is next for the dollar general? News ad

The dollar general today

Current

Dollar general

$ 82.38 +0.97 (+1.19%)

As of 03/19/2025, 23:59

This is a fair market price provided by Polygon.io. Learn more.

52-week range

$ 66.43

▼

$ 164,12

Dividend yield

2.86%

P/e ratio.

13.57

Value is valuable

$ 92.26

Dollar General Corporation NYSE: DG The shares hold a profit by about 6% after the discount seller announced profit on March 13, 2025. The company received a small blow to the revenue, and its income increased by $ 10.20 billion, predicted by analysts.

This number of revenues reflected an increase in sales in one store by 1.4% (YOY), which was associated with an increase in customer traffic by 1.1% and an increase in the average transaction amount by 0.3%. Nevertheless, a positive amount of income was softened by 42% miss as a result. 95 cents of the company’s profit per share (EPS) were much lower than the EPS forecast by 1.51 US dollars analysts.

Analytical sentiments are neutral, and in the next 12 months, little has changed the expectations of rising prices for shares within 15%. Investors may have the opportunity for growth, but they will have to trust that the dollar general can overcome several obstacles.

Consumers are focused on essential items, since the inflation pressure is preserved

Digging in sales rooms, the management quickly noted that most of the sales was that it was considered the main items. Consumers continue to feel a pinch of inflation and comments that they buy only essential items.

This scenario is not limited to chains of dollar stores. Walmart Inc. NYSE: WMT Provided a similar commentary on the consumer within several quarters. However, unlike discount retail chains, Walmart won from the influx of richer consumers who raise weak for their target consumers.

Nevertheless, dollar stores were a canary in a coal mine for investors who were inclined to believe that the economy was weaker than expected. Although DG shares are currently positive in 2025, investors are still fond of 46.9% of losses over the past 12 months. This is favorably compared with Dollar Tree Inc. NASDAQ: DLTRwhich has decreased by 49% over the past 12 months, and five below Inc. Nasdak: Fivewhich decreased by 63%.

Victim of growing interest rates

Over the past few years, the key element of the growth strategy of the General of the dollar has been based on the creation of the company’s trace. In addition to the opening of new stores under the general name of the dollar, the company expanded the number of stores under the Popeshelf banner. These stores are designed for suburban buyers with higher experience to turn on what the company calls the objects “Fresh + Fun”, such as home decor.

This expansion made sense when interest rates were around zero. Nevertheless, the growing interest rate from the end of 2022 forces the general purpose of the general purpose to overestimate the composition of its store. In fact, the company should quickly make new stores profitable, and this will happen due to ineffective places. At the end of 2024, Dollar General began to evaluate stores for closing or rebranding, based mainly on efficiency factors.

Benefits from the Rotation sector

So, with two significant obstacles holding investors from the dollar and all retail shares, why do stocks surpass a wider market? One of the reasons is sector rotation. Investors are running extremely rehearsed technological actions and move on to a more reasonable value of shares, such as DG, which are currently traded with 13 -fold income.

To present this in the future, investors buy DG shares with a discount of about 31% to their average P/E ratio by 19 times over the past 10 years. Dollar General also pays dividends, which currently offers profitability of about 2.94%. This dividend can separate it from competitors, such as Dollar Tree, and five lower, which can offer a large potential assessment, but without dividends.

Nevertheless, the same good reason is that there were low expectations that go to profit. This means that analysts more willingly lose sight of Miss by income from profit. What is even more important, although the company has not assumed an obligation for a certain period, it predicts the growth of EPS by more than 10%, starting from 2026, when the influence of the store’s closure will be felt in the financial indicators of the company.

Technical data support a higher price

Since September, DG shares have been traded in a certain range with a high level of about $ 87 and at least about $ 68. However, after the report report, the DG shares find support in their 100-day simple sliding medium (SMA). Investors will want to see if the promotion will be able to raise the level of about $ 81, which acted as a resistance level.

Before considering the General of the dollar, you will want to hear this.

Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their clients to buy now before a wider market is won … and Dollar General was not on the list.

While Dollar General currently has a retention rating among analysts, analysts with the highest rating believe that these five promotions are better buying.

View five shares here

What shares will probably flourish in today’s complex market? Enter your email address, and we will send you a list of ten Marketbeat shares, which will move in any economic environment.

Get this free report

Like this article? Share this with a colleague.

The link is copied to the exchange buffer.