Analyst: Retailer to Keep Growing Amid Solid Macro Backdrop

Core Viewpoint - Dollar General Corp's stock has been upgraded to "overweight" by J.P. Morgan Securities, with a new price target set at $166, indicating expected sales growth driven by new store openings and a favorable macroeconomic environment [1] Group 1: Stock Performance - Dollar General's stock is currently trading at $133.85, reflecting a 0.5% increase [1] - The stock reached a 52-week high of $135.52 and is on track for a fifth consecutive gain, with over 78% growth anticipated for 2025 [2] - The shares have shown consistent performance, being above all short- and long-term moving averages [2] Group 2: Analyst Ratings and Market Sentiment - Among the 29 firms covering Dollar General, 17 have a "hold" rating, indicating potential for further bullish notes [3] - The 12-month consensus target price is $132.16, which is a 1.7% discount to current trading levels [3] - There is potential for a short squeeze, as bearish bets have increased by 33%, with 12.34 million shares sold short, accounting for 5.6% of the available float [3] Group 3: Options Market Insights - Short-term options traders are currently more bearish than usual, as indicated by a put/call open interest ratio (SOIR) of 1.18, which is close to the annual peak [4] - An unwinding of this bearish sentiment could provide additional support for the stock [4] - The Schaeffer's Volatility Index (SVI) is at 20%, which is higher than 89% of readings from the past year, suggesting that options are currently affordably priced [5]