Dollar General Corporation (DG), headquartered in Goodlettsville, Tennessee, is one of the largest discount retailers in the U.S. With a market cap of $19.10 billion, Dollar General provides affordable and convenient shopping options to millions of customers, primarily in rural and underserved communities.
Companies valued at $10 billion or more are generally described as "large-cap stocks," and Dollar General is a prime example of this. The company plays a crucial role in providing convenient shopping options to millions of customers, especially in rural and underserved communities, making everyday necessities more accessible and affordable across the nation.
DG shares are trading 48.5% below their 52-week high of $168.07, which they hit on Mar. 14. The stock has declined 31.7% over the past three months, underperforming the broader Nasdaq Composite ($NASX), which has marginally declined over the same time frame.
In the longer term, DG is down 36.4% on a YTD basis, and the shares have declined by 24.9% over the past 52 weeks. In comparison, the Nasdaq has gained 20% in 2024 and rallied 31.7% over the past year.
To confirm its bearish trend, DG has been trading below its 50-day moving average since late August and the 200-day moving average since early June.
On Aug 29. Dollar General dropped over 26%, leading losses in the S&P 500, after reporting Q2 net sales of $10.21 billion, falling short of the $10.37 billion consensus. The company also lowered its full-year comparable sales forecast to a range of 1% to 1.6%, down from the previous estimate of 2% to 2.7%.
Highlighting the contrast in performance, DG's competitor, Dollar Tree, Inc. (DLTR), has underperformed both the stock and NASX. DLTR has declined 48% on a YTD basis.
Analysts are moderately bullish about DG's prospects despite the weak price performance. The stock has a consensus rating of "Moderate Buy" from 27 analysts in coverage. The mean price target is $102.88, suggesting a premium of 18.9% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
