Dollar General stock has risen 28.5% in 3 months, showing strong growth potential

From Zacks Investment Research: 2025-04-08 10:44:00

Dollar General (DG) stock has risen about 28.5% in the past three months, outpacing the industry and S&P 500. The company has outperformed peers like Dollar Tree, Costco, and Target. Dollar General’s growth story remains strong due to value-creating initiatives and real estate growth strategy. Despite challenges, the company plans ambitious real estate projects and digital expansion. Management targets net sales growth, operating margin expansion, and EPS growth. However, the core customer base faces financial strain, and EPS is expected to decline in the first half of fiscal 2025. Analysts have revised downward estimates for DG stock.

Dollar General is currently trading at a forward P/E ratio of 16.29, a discount compared to the industry average but slightly overvalued compared to its median P/E level. The stock is trading at a premium to Dollar Tree and Target but at a discount to Costco. Despite near-term pressures, Dollar General’s strategic execution and operational foundation indicate a solid outlook. For current investors, holding onto this Zacks Rank #3 (Hold) stock could be a wise choice.



Read more at Zacks Investment Research: Dollar General Up 29% in Three Months: Book Profit or Hold DG Stock? – April 8, 2025