Dollar General (DG) Surges 20.9% on Strong Earnings. Time to Book Gains?

Core Insights - Dollar General Corporation (NYSE:DG) experienced a significant increase in stock price, soaring by 20.9% week-on-week, driven by strong third-quarter earnings performance [1][3] - The company reported a net income growth of 43.8%, reaching $282.6 million compared to $196.5 million in the same period last year [1][2] - Net sales increased by 4.6% to $10.6 billion from $10.2 billion year-on-year, supported by new store openings and strong same-store sales [2][3] Financial Performance - Same-store sales grew by 2.5% due to increased foot traffic [3] - The company raised its net sales outlook for the full fiscal year to a range of 4.7% to 4.9%, up from the previous range of 4.3% to 4.8% [3] - Same-store sales growth target was adjusted to 2.5% to 2.7%, compared to the prior target of 2.1% to 2.6% [3] Earnings Projections - Diluted EPS is projected to be between $6.30 and $6.50, an increase from the previous estimate of $5.80 to $6.30 [4] - The company announced a cash dividend of $0.59 per common share, payable on January 20, 2026, with a record date of January 6, 2026 [4]