Last Updated: 12 Nov 2024
Executive Summary
Dollar General Corporation (DG) is a leading American variety store chain with a market capitalization of $169.2 billion. The company has a strong financial position with an EBITDA of $3.03 billion and a profit margin of 3.57%. DG's stock is currently trading at $76.29, which is below its 52-week high of $165.52. Analysts have a positive outlook on DG, with a consensus target price of $99.35.
Company Overview
Dollar General was founded in 1939 and is headquartered in Goodlettsville, Tennessee. The company operates over 18,000 stores in 46 states. DG sells a wide variety of products, including groceries, health and beauty aids, home goods, and seasonal items. The company's target market is low- to middle-income consumers.
Fundamental Analysis
DG has a strong financial position. The company's revenue has grown steadily in recent years, and its profit margin has remained stable. DG's return on assets and return on equity are both above industry averages. The company also has a strong balance sheet, with low levels of debt.
DG's earnings per share (EPS) is expected to grow by 7.5% in 2023 and 8.0% in 2024. The company's dividend yield is 3.07%, which is above the industry average.
Technical Analysis
DG's stock price has been trending down in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
The technical analysis suggests that DG's stock price could continue to trend down in the short term. The stock is currently trading below its key moving averages and the RSI is oversold. However, the company's strong fundamentals could provide support for the stock price.
Long Term Outlook
The long-term outlook for DG is positive. The company is a leader in the variety store industry and has a strong financial position. DG is also expected to benefit from the continued growth of the low- to middle-income consumer market.
Analyst Recommendations
Analysts have a positive outlook on DG. The consensus target price is $99.35, which represents a potential upside of 27.5% from the current price. Four analysts have a strong buy rating on the stock, six have a buy rating, and 20 have a hold rating. Only one analyst has a sell rating on the stock.
