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

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Value Score identifies undervalued stocks using ratios like P/E, PEG, and Price/Sales to find attractive investment opportunities [3] - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by assessing recent price changes and earnings estimate revisions [5] - The VGM Score combines all three Style Scores, providing a comprehensive evaluation of stocks based on value, growth, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank, based on earnings estimate revisions, has shown a strong performance with 1 (Strong Buy) stocks yielding an average annual return of +23.81% 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] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering 3 (Hold) stocks with similar scores for potential upside [9] Stock Highlight: Dollar General - Dollar General Corporation, a major discount retailer in the U.S., is currently rated 3 (Hold) with a VGM Score of A and a Momentum Style Score of B, having seen a 36.3% increase in shares over the past four weeks [11] - Recent upward revisions from 21 analysts have raised the earnings estimate for fiscal 2026 by $0.30 to $6.44 per share, with an average earnings surprise of +22.9%, making it a noteworthy option for investors [12]