Dollar General reports Q3 numbers December 4

DG
About Dollar General Corporation

A leading American discount retailer, Dollar General operates over 15,000 stores in 44 states, selling branded and private-label products across a wide variety of categories. In fiscal 2017, 77% of net sales came from consumables (including paper and cleaning products, packaged and perishable food, tobacco, and health and beauty items), 12% from seasonal merchandise (such as toys, greeting cards, decorations, and gardening supplies), 6% from home products (for example, kitchen supplies, small appliances, and cookware), and 5% from basic apparel. Stores average roughly 7,400 square feet and about 75% of Dollar General locations are in towns of 20,000 or fewer people. The company emphasizes value, with more than 80% of its items offered at everyday low prices of $5 or less.

What's Happening With DG View more about DG >

Discount retailer Dollar General (DG) will post its third-quarter numbers before the market open December 4. The company is expected to post earnings of $1.26 per share, up from $0.93 during the same period last year. DG stock is up 19% on the year.

Technical Analysis

DG was recently trading at $110.89 down $7.56 from its 12-month high and $25.35 above its 12-month low. InvestorsObserver’s Stock Score Report gives DG a 92 long-term technical score and a 97 short-term technical score. The stock has recent support above $105 and recent resistance below $117.5. Of the 16 analysts who cover the stock 10 rate it Strong Buy, 1 rate it Buy, 5 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, DG gets a score of 85 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

DG has sold off slightly in November in sympathy to a volatile market, but the stock has found support and is trending higher ahead of the upcoming earnings report. Retailers have done good this earnings season, and early indications are for a strong holiday season which would boost the entire sector in the first part of next year. Traders expect a small earnings beat for Dollar General with a whisper number of $1.28. The stock has a reasonable valuation with a forward P/E of 16 and earnings expected to rise 14% per annum over the next five years. DG trades at $110.32 with an average price target of $115.27.

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