With a market cap of $18.1 billion, Dollar General Corporation (DG) is a leading discount retailer in the United States, offering a wide range of low-priced merchandise across the southern, southwestern, midwestern, and eastern regions. It provides products in four main categories - consumables, seasonal items, home products, and apparel—featuring both national brands and private labels.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Dollar General fits this criterion perfectly. Headquartered in Goodlettsville, Tennessee, Dollar General continues to serve customers with everyday essentials at affordable prices.
However, the discount retailer pulled back 49.6% from its 52-week high of $164.12. Shares of Dollar General have gained 8.2% over the past three months, outperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) marginal decrease over the same time frame.
Longer term, DG stock is up 9% on a YTD basis, outperforming XLP’s 1.1% rise. Nevertheless, shares of Dollar General have dipped 47% over the past 52 weeks, lagging behind XLP’s 4.6% return over the same time frame.
DG stock has been trading below its 50-day and 200-day moving averages since last year.
Dollar General stock jumped 6.8% on March 13 after reporting better-than-expected Q4 results, with adjusted earnings of $1.68 per share beating estimates. Revenue reached $10.3 billion, surpassing expectations, driven by store remodeling and inventory trimming efforts. Full-year revenue rose nearly 5% to $40.6 billion, and the company projected 2025 comparable-store sales growth of 2.2%, topping the analyst consensus.
However, in comparison, rival Walmart Inc. (WMT) has outperformed DG, surging 40.7% over the past 52 weeks. But, Walmart saw a decline of 4.6% on a YTD basis, lagging behind Dollar General.
Despite DG’s underperformance over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 28 analysts covering the stock, and as of writing, it is trading below the mean price target of $86.15.
