Retail sales are booming this holiday season, with Dollar General (DG) and Dollar Tree (DLTR) benefiting from their value-focused business models. Both chains beat Q3 expectations, with Dollar General stock up 75% and Dollar Tree shares up over 60% this year.
Dollar General posted Q3 sales of $10.64 billion, with same-store sales up 2.5% and EPS surging 44%. Dollar Tree’s Q3 sales fell due to divesting Family Dollar but saw EPS rise 8%. Both companies raised full-year guidance for EPS and sales.
Dollar General expects full-year EPS of $6.30-$6.50, while Dollar Tree projects adjusted EPS of $5.60-$5.80. Both stocks are trading at reasonable multiples compared to the industry average, making them attractive buy-the-dip candidates.
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Read more at Nasdaq: Buy the Dollar Store Stocks for the Holiday Shopping Season?
