Dollar(US:DG) ZACKS·2026-01-28 00:15Core Viewpoint - Dollar General's stock performance has shown a recent decline, but the company is expected to report earnings that reflect a slight decrease in EPS while showing revenue growth compared to the previous year [1][2]. Company Performance - Dollar General closed at $147.66, down 1.78% from the previous trading session, underperforming the S&P 500's gain of 0.41% [1]. - The company has seen a 9.31% increase in stock price over the past month, outperforming the Retail-Wholesale sector's gain of 4.12% and the S&P 500's gain of 0.38% during the same period [1]. Earnings Estimates - The upcoming earnings report is expected to show an EPS of $1.58, which is a decrease of 5.95% from the same quarter last year [2]. - Revenue is forecasted to be $10.75 billion, indicating a growth of 4.28% compared to the corresponding quarter of the prior year [2]. - For the full year, analysts expect earnings of $6.49 per share and revenue of $42.56 billion, reflecting increases of 9.63% and 4.79% respectively from the previous year [3]. Analyst Sentiment - Recent changes in analyst estimates for Dollar General indicate a favorable outlook on the company's business health and profitability [4]. - The Zacks Rank system currently rates Dollar General as 1 (Strong Buy), suggesting a positive sentiment among analysts [6]. Valuation Metrics - Dollar General's Forward P/E ratio is 23.18, which is lower than the industry average of 29, indicating a potential valuation discount [7]. - The company's PEG ratio stands at 2.73, compared to the industry average PEG ratio of 3.15, suggesting a more favorable growth valuation [7]. Industry Context - The Retail - Discount Stores industry, to which Dollar General belongs, has a Zacks Industry Rank of 17, placing it in the top 7% of over 250 industries [8]. - Strong industry rankings correlate with better stock performance, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [8].