From Yahoo Finance: 2025-03-22 04:25:00

Dollar General’s stock has dropped 63% in the last three years, but recent signs show the company may be turning things around. Despite missing bottom-line estimates in its earnings report, the stock surged 7% on positive growth guidance. The retailer plans to close underperforming stores and open new ones, aiming for steady growth over the next five years.

The company’s long-term guidance includes annual same-store sales growth of 2-3% and EPS growth of 10% starting next year. Dollar General also aims to return to an adjusted operating margin of 6-7% by 2028-2029. With a price-to-earnings ratio of 16, the stock is trading at a discount to the S&P 500.

Despite ongoing macroeconomic challenges, Dollar General remains a dominant player in small-footprint discount retail. With a track record of steady growth and plans for future expansion, the company is positioned for success. Investors may find value in Dollar General’s focus on essentials like groceries and its commitment to long-term growth.

The Motley Fool Stock Advisor team did not include Dollar General in its list of 10 best stocks to buy now. However, historical performance shows the potential for significant returns with their recommendations. Stock Advisor’s average return of 835% outperforms the S&P 500’s 164%, making it a valuable resource for investors looking to capitalize on market opportunities.



Read more at Yahoo Finance: Dollar General Will Beat the Market. Here’s Why.