Guggenheim Reaffirms Buy Rating on Dollar General (DG) Ahead of Q3 Earnings

Core Viewpoint - Dollar General Corporation (NYSE:DG) is expected to perform well in the retail sector, with positive earnings forecasts and growth projections for 2025 [1][2]. Group 1: Earnings Expectations - Guggenheim has reaffirmed a $125 price target and a Buy rating for Dollar General, anticipating "solid, potentially above-consensus" third-quarter earnings ahead of the announcement on December 4 [1]. - During its Q2 earnings call, Dollar General raised its 2025 forecast, predicting same-store sales growth of 2.1% to 2.6% and net sales growth of 4.3% to 4.8% [2]. Group 2: Future Projections - Guggenheim has cautious expectations for Dollar General's 2026 results, noting that the company should benefit from decreasing LIFO and interest costs, along with a smaller number of shares, even with a flat EBIT margin [3]. - Dollar General operates a chain of neighborhood retail stores that provide affordable everyday essentials, focusing on communities in rural and smaller towns [3].