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Dollar General Stock Eyes Best Day on Record After Earnings
GMGM(GM) Schaeffers Investment Research·2025-06-03 14:27

Core Insights - Dollar General Corp's shares surged 13.6% to 110.39,markingthelargestdailyincreaseever,followingbetter−than−expectedearningsandrevenue,alongwithanimprovedfull−yearsalesoutlook[1]−Forthefiscalfirstquarter,DollarGeneralreportedearningsof110.39, marking the largest daily increase ever, following better-than-expected earnings and revenue, along with an improved full-year sales outlook [1] - For the fiscal first quarter, Dollar General reported earnings of 1.78 per share on revenue of 10.44billion,exceedingestimatesof10.44 billion, exceeding estimates of 1.48 and 10.31billionrespectively[1]−Thecompany′sguidanceassumescurrenttariffrateswillremaineffectivethroughmid−August[1]OptionsActivity−Followingtheearningsreport,DollarGeneral′soptionsmarketsawsignificantactivity,withover51,000optionstradedinthefirsthour,whichistentimestheaverageintradayvolume[2]−Themostactiveoptionsincludedtheweekly6/6120−strikecallandthe110−strikecallfromthesameseries[2]AnalystSentiment−Analystshavenotyetprovidedupdatedratings,butthereispotentialforupgradesas17outof28analystscurrentlyrateDollarGeneralstockasa"hold"[3]−The12−monthconsensuspricetargetis10.31 billion respectively [1] - The company's guidance assumes current tariff rates will remain effective through mid-August [1] Options Activity - Following the earnings report, Dollar General's options market saw significant activity, with over 51,000 options traded in the first hour, which is ten times the average intraday volume [2] - The most active options included the weekly 6/6 120-strike call and the 110-strike call from the same series [2] Analyst Sentiment - Analysts have not yet provided updated ratings, but there is potential for upgrades as 17 out of 28 analysts currently rate Dollar General stock as a "hold" [3] - The 12-month consensus price target is 95.22, indicating an 11% discount to current trading levels, suggesting room for improved sentiment [3] Stock Performance - Dollar General shares are attempting to recover from a mid-August bear gap that previously pushed them below the $100 level for the first time since December 2018 [4] - Year-to-date, the stock is up 45.1%, but it remains down 21.2% over the last 12 months [4] - The stock is trading above its 320-day moving average for the first time since February 2023 [4]