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why is dollar general stock dropping

by Eloy Lakin Published 3 years ago Updated 2 years ago
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Is Dollar General a good stock to buy now?

The Bottom Line When a good company's stock goes on sale, it's a good time to buy it. DG stock is on sale right now. I expect accelerating top-line growth, thanks to the new chains and expansion into health care. Dollar General is also the most profitable general retailer out there.Mar 2, 2022

Why is DG going down?

Dollar General Stock Declines After Q2 2021 Earnings Report The company noted that same-store sales declined by 4.7% compared to the second quarter of 2020 due to decline in customer traffic.Aug 26, 2021

Is Dollar General undervalued?

Is Dollar General Corp Stock Undervalued? The current Dollar General Corp [DG] share price is $240.77. The Score for DG is 64, which is 28% above its historic median score of 50, and infers lower risk than normal. DG is currently trading in the 60-70% percentile range relative to its historical Stock Score levels.

Will DG stock go up?

Given the current short-term trend, the stock is expected to rise 16.35% during the next 3 months and, with a 90% probability hold a price between $243.76 and $296.94 at the end of this 3-month period.

Is Dollar General a buy or sell?

Dollar General has received a consensus rating of Buy. The company's average rating score is 2.63, and is based on 11 buy ratings, 4 hold ratings, and 1 sell rating.

What stock sector is Dollar General in?

Dollar General's sector is Consumer Discretionary.

When was the last time Dollar General stock split?

DG SplitsSplit dateSplit RatioFeb 13, 19971/52.1 Stock SplitApr 29, 19961/52.1 Stock SplitMar 07, 19951/52.1 Stock SplitApr 18, 19941/52.1 Stock Split15 more rows

Does Dollar General stock pay a dividend?

How much is DOLLAR GENERAL's dividend? DG pays a dividend of $1.81 per share. DG's annual dividend yield is 0.73%. DOLLAR GENERAL's dividend is lower than the US industry average of 1.38%, and it is lower than the US market average of 4.13%.

How reliable are stock forecasts?

Expect 1 to 3 inches but if the center of the low-pressure system passes further south, then we might only get flurries. People who make financial forecasts tend to sound extremely confident. But meteorologists tend to sound uncertain, even wishy-washy, about their own forecasts.Feb 16, 2022

How do I buy DG stock?

How to buy shares in Dollar General CorporationCompare share trading platforms. Use our comparison table to help you find a platform that fits you.Open your brokerage account. ... Confirm your payment details. ... Research the stock. ... Purchase now or later. ... Check in on your investment.

The discount retail giant's stock stumbled after second-quarter results left investors underwhelmed

As a technology and consumer goods specialist for the Fool, Steve looks for responsible businesses that positively shape our lives. Then he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

What happened

Shares of Dollar General Corp ( NYSE:DG) were down 5.3% as of 1:06 p.m. EDT Thursday after the discount retailer announced mixed second-quarter 2017 results and weaker-than-expected full-year earnings guidance.

So what

To be fair, note this year's earnings included a $0.02-per-share charge related to Dollar General's June acquisition of 285 new store locations in 35 states from a small-box multiprice-point retailer. The company plans to convert those stores to Dollar General locations by the end of November.

Now what

Dollar General reiterated its full fiscal 2017 outlook for sales to increase by 5% to 7%, but now assumes a change in same-store sales at the high end of its previous guidance for growth ranging from slightly positive to 2%.

What is Dollar General stock worth in 2020?

Dollar General's stock was trading at $157.63 on March 11th, 2020 when Coronavirus (COVID-19) reached pandemic status according to the World Health Organization (WHO). Since then, DG shares have increased by 45.2% and is now trading at $228.90. View which stocks have been most impacted by COVID-19.

When will Dollar General release its next quarterly earnings?

Dollar General is scheduled to release its next quarterly earnings announcement on Thursday, August 26th 2021. View our earnings forecast for Dollar General.

How much does Dollar General pay dividends?

Dollar General pays an annual dividend of $1.68 per share and currently has a dividend yield of 0.74%. Dollar General has been increasing its dividend for 5 consecutive years, indicating the company has a new, but growing committment to grow its dividend. The dividend payout ratio of Dollar General is 15.82%.

What is the dividend payout ratio for Dollar General?

Based on earnings estimates, Dollar General will have a dividend payout ratio of 15.03% next year. This indicates that Dollar General will be able to sustain or increase its dividend. View Dollar General's dividend history.

There seems to be a new category of companies where, despite really good earnings results, the stock goes down

In this episode of MarketFoolery, Chris Hill chats with Motley Fool analyst Maria Gallagher about the latest headlines and earnings reports from Wall Street. They go through the earnings reports of a brick-and-mortar retailer, talk about a cybersecurity stock hitting all-time highs, and much more.

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Hmmm

Dollar General ( DG) - Get Dollar General Corporation Report reported the firm's third-quarter results this morning. Not very well received would be a polite way to put it. I must say, that as a trader/investor who either actually trades the names I write about, or at least considers doing so, that this name perplexes.

The Digits

The firm reported adjusted Q3 EPS of $1.31. The adjustment was a $0.05 charge related to hurricanes that hit the southeastern Untied Sates during the quarter. This result beats expectations of $1.26. Revenue was also strong, both beating expectations as well as sporting 8.8% y/y growth.

Reasons

This firm appears to be placing blame for its expected shortfall on the trade condition with China, despite the fact that Dollar General only imports a rough 5% of the merchandise on its shelves. The fact is that many middle managers who sell to the firm have supply lines that run through China. This makes those supply lines vulnerable.

The Bottom Line

It seems to me that despite the discount in this name today, management is not confident. Frankly, I thank them for their honesty, but I cannot invest where I feel that management does not believe in their own ability to adapt and overcome. I certainly will not, in a public forum, lead my readers in a direction that I will not travel with them.

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