Prediction: Dollar General Will Beat the Market. Here's Why.
Dollar General (NYSE: DG) has been a laggard on the stock market in recent years as the company has lost market share to Walmart and struggled in an environment with weak consumer discretionary spending. Over the last three years, Dollar General's stock is down 63% while the broad market has surged.However, there are signs that Dollar General has hit rock bottom. 2024 was no doubt a rough year for the discount retailer as operating income plunged 30% in 2024 to $1.7 billion due to the economic challenges as well as increased markdowns, increased inventory damage, and an unfavorable shift in sales mix. The company's fourth-quarter earnings report last week was generally dismal as it badly missed bottom-line estimates, and its earnings-per-share (EPS) guidance was also below the consensus. Continue reading
Dollar General (NYSE: DG) has been a laggard on the stock market in recent years as the company has lost market share to Walmart and struggled in an environment with weak consumer discretionary spending. Over the last three years, Dollar General's stock is down 63% while the broad market has surged.
However, there are signs that Dollar General has hit rock bottom. 2024 was no doubt a rough year for the discount retailer as operating income plunged 30% in 2024 to $1.7 billion due to the economic challenges as well as increased markdowns, increased inventory damage, and an unfavorable shift in sales mix.
The company's fourth-quarter earnings report last week was generally dismal as it badly missed bottom-line estimates, and its earnings-per-share (EPS) guidance was also below the consensus.
