Why Dollar General (DG) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding in stock selection with high potential for market outperformance [2] Zacks Style Scores Overview - The Zacks Style Scores categorize stocks based on value, growth, and momentum, assigning ratings from A to F, with A indicating the highest potential for outperformance [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score evaluates stocks based on projected earnings and sales growth, emphasizing future financial health [5] - The Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points for investments [6] - The VGM Score combines all three Style Scores, providing a comprehensive assessment of stocks based on value, growth, and momentum [6] Integration with Zacks Rank - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing investment potential [9] - Stocks rated 4 (Sell) or 5 (Strong Sell) may still have high Style Scores but are likely to experience declining earnings forecasts [10] Company Spotlight: Dollar General - Dollar General Corporation, a leading discount retailer in the U.S., trades primarily in merchandise priced at $10 or less [11] - Currently rated 3 (Hold) with a VGM Score of A, Dollar General has a Value Style Score of A, supported by a forward P/E ratio of 16.65 [11] - Recent analyst revisions have increased earnings estimates for fiscal 2026, with the Zacks Consensus Estimate rising by $0.36 to $6.13 per share, and an average earnings surprise of +11.3% [12]