Latest news with #DollarGeneral
Yahoo
21 hours ago
- Business
- Yahoo
Dollar General (DG) Delivers Market-Beating Returns in 2025
Dollar General Corporation (NYSE:DG) is one of the Best Dividend Stocks of 2025, surging by more than 49% since the start of the year. A busy shopping aisle filled with discounted items in a retail store. After experiencing several years of declining market share to competitors like Walmart and weakening profits, DG faced challenges in its stock performance. However, the company's 'Back to Basics' turnaround plan, combined with economic disruptions from the trade war, played a key role in restoring both revenue and profit growth. This recovery was reflected in a 16% single-day surge in the stock following the release of its fiscal first-quarter earnings in early June. In the first quarter of 2025, Dollar General Corporation (NYSE:DG) reversed its profit decline trend, reporting a gross margin increase of 78 basis points to 31.0%, driven by lower shrink and higher inventory markups. On the other hand, selling, general, and administrative expenses rose by 77 basis points to 25.4%, mainly due to increased labor costs, higher incentive payouts, and spending on repairs and maintenance. Analysts believe that Dollar General Corporation (NYSE:DG) remains well-positioned for further growth, supported by ongoing store openings and updates to current locations through its Project Elevate and Renovate initiatives. The company offers a quarterly dividend of $0.59 per share and has a dividend yield of 2.10%, as of June 26. While we acknowledge the potential of DG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Dollar General Corporation (DG)'s Goldman Sachs Downgrade Was 'Brutal,' Says Jim Cramer
Dollar General Corporation (NYSE:DG) is one of the . Dollar General Corporation (NYSE:DG) is an American discount store retailer whose shares are up by 49% year-to-date primarily on the back of a 16% gain in June. The firm benefited from a strong Q1 earnings report which saw it beat analyst earnings estimates by 30 cents and revenue estimates by $130 million. Cramer's previous comments about Dollar General Corporation (NYSE:DG) have pointed out that the firm imports a mere 4% of its goods from foreign manufacturers. This time around, he commented on Goldman Sachs downgrading the shares to Neutral from Buy: '[On Goldman cutting Dollar General] That was brutal.' A busy shopping aisle filled with discounted items in a retail store. Cramer recently Dollar General Corporation (NYSE:DG)'s consumer sentiment estimates: 'I had a, this outfit called HundredX on last night, it was a terrific Goldman guy who's left Goldman to do this. Robert Pace. The indications of spend for the consumer, it's going up. I mean, nothing is as it seems. I mean his work is just superb and it just says, right now the consumer is actually looking to spend more, maybe much more. That's not what you get from Dollar Tree, Dollar General.' While we acknowledge the potential of DG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Newsweek
a day ago
- Business
- Newsweek
Dollar General Changing Prices Nationwide: What To Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Dollar General has announced a major summer savings initiative that will reduce prices in more than 1,000 of its stores across the United States. Newsweek contacted Dollar General for comment via email on Friday. Why It Matters The discount campaign, which began this week and will run through Labor Day, includes significant markdowns on everyday essentials such as food, health and wellness items, beauty products, and household cleaning supplies. The announcement comes after the company declared huge closures nationwide earlier this year, as reported by Newsweek. What To Know According to the company, approximately 40 percent of products in select departments will be available at lower prices. These in-store savings will be bolstered by weekly promotions and digital coupon offers through the myDG app and website. A sign for a Dollar General store is seen on May 28, 2025, in Chicago, Illinois. A sign for a Dollar General store is seen on May 28, 2025, in Chicago, the highlighted events is "WOW Wednesday" on July 2, which will feature a surprise discount, and a special "7 Days of Savings" promotion from July 6 through July 12, offering up to 50 percent off a different item each day. The initiative also includes back-to-school discounts, with weekday digital coupons providing $5 off purchases of $25 or more, and special 30 percent off coupons for teachers. This campaign builds on earlier pricing changes implemented by the company earlier this year. Dollar General had already reduced prices on approximately 200 items and continues to offer roughly 2,000 products at or below the $1 price point. Dollar General operates more than 20,500 stores across 48 states and in Mexico. The company says registered myDG users can save between $300 and $500 each week by combining digital coupons with in-store offers, making this one of its most ambitious savings strategies to date. What People Are Saying Emily Taylor, Dollar General's Executive Vice President and Chief Merchandising Officer, said in the company announcement that the summer campaign is designed to help families navigate rising costs. "Customers from all walks of life seek ways to save on items they need and want, and DG is here for what matters, helping them stretch their budgets. With kids home from school, there's often additional meal prep and a desire for additional activities. Our discount offers are designed to enhance affordability on the items our customers need and want." Dollar General states on its website: "The yellow Dollar General store sign is a popular symbol of value. Our convenient, everyday low prices model has survived and thrived through the decades. The company remains true to the humble ethic of hard work and friendly customer service embodied by the founding family. About a quarter of Dollar General's merchandise still sells for a dollar or less. The simplicity that defined our past is the engine that drives our success today." What Happens Next The announcement comes at a time when many American households remain under pressure from inflation and are seeking greater value from everyday purchases. Dollar General's move is indicative of the growing competition among discount retailers to win over cost-conscious consumers during the peak summer shopping season. Details on savings events and items may be found weekly at
Yahoo
2 days ago
- Business
- Yahoo
Goldman Sachs Downgrades Dollar General (DG) Stock
Dollar General Corporation (NYSE:DG) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 24, Goldman Sachs downgraded the company's stock to 'Neutral' from 'Buy' with a price objective of $116, an increase from the prior target of $115. The firm cited valuation for this downgrade following a robust recovery in Dollar General Corporation (NYSE:DG)'s stock. Also, the firm believes that a significant competitive environment can impact its same-store sales. It highlighted the ongoing investment needs in stores, together with supply chain infrastructure. A busy shopping aisle filled with discounted items in a retail store. As per analyst Kate McShane, Dollar General Corporation (NYSE:DG)'s management team worked hard in a bid to improve its positioning via the 'Back to Basics' program. This resulted in better comp trends as well as improved margins. While the analyst believes that Dollar General Corporation (NYSE:DG) still has room for margin improvement in the long term, the stock is pricing in its better fundamentals, added Kate McShane. In Q1 2025, the company's net sales rose 5.3% to $10.4 billion as compared to $9.9 billion in Q1 2024. This rise was because of positive sales contributions from new stores and growth in same-store sales, partially mitigated by the impact of store closures. For FY 2025, Dollar General Corporation (NYSE:DG) expects net sales growth of ~3.7% – 4.7% as compared to the previous expectation of ~3.4% to 4.4%. Artisan Partners, an investment management company, released its Q1 2025 investor letter. Here is what the fund said: 'Other top performers were Heineken and Dollar General Corporation (NYSE:DG). Discount retailer Dollar General (DG) has contended with several business pressures post the pandemic, including execution issues, rising competition and an increasingly constrained lower income consumer after a period of high inflation. Additionally, labor costs, shrink and markdowns have hurt margins. However, the stock has been experiencing renewed interest amid a broader market rotation to cheaper stocks driven by tariff fears and policy uncertainty, as well as the potential for some of DG's headwinds to subside. The company is making progress on fixing operational issues, from store standards to supply-chain execution and labor efficiency. Additionally, with inflation stabilizing, there are early signs that customers have adjusted to higher price levels as basket sizes and units are beginning to rise again. Another dynamic is DG's business model is countercyclical. During tougher economic times, DG typically gets trade-down business from middle-income cohorts, and with the possibility that escalating tariffs could trigger a recession, investors see DG as a potential beneficiary.' While we acknowledge the potential of DG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Why Dollar General Stock Tumbled on Tuesday
Goldman Sachs no longer rates the shares a buy. They were downgraded, largely on recent price appreciation. 10 stocks we like better than Dollar General › A recommendation downgrade from a veteran investment bank had a predictable effect on Dollar General (NYSE: DG) stock Tuesday. Investors put the company in the bargain bin by trading it down by more than 1% on the day. That didn't contrast well with the S&P 500's (SNPINDEX: ^GSPC) gain of over 1%. The institution behind the move was Goldman Sachs, whose analyst Kate McShane lowered her rating on Dollar General to neutral -- at a price target of $116 per share -- from her preceding buy. In her view, the budget retailer's recent share price appreciation has left it fairly priced, according to reports. At its current level, the company would have to substantially improve its fundamentals, and that isn't likely to happen, given the tough competitive environment in which it operates. McShane also said Dollar General is limited by necessary investments into infrastructure and its supply chain. That being said, she was complimentary about management's success in better positioning the company via the Back to Basics program. In her opinion, this has led to encouraging comparable-sales growth, and higher profit margins. Dollar General's robust, year-to-date increase is striking -- even with the Tuesday slip, the stock has gained nearly 50%, against the S&P 500 index's less than 4% rise. Much of this is a play on a potential economic slowdown; particularly in the opening months of 2025, the market was worried about the detrimental effect of high tariffs on the economy. This is not such a concern anymore. So I think the assessment that Dollar General doesn't have much (if any) upside is realistic. This isn't a stock I'd get very excited about just now. Before you buy stock in Dollar General, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dollar General wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,692!* Now, it's worth noting Stock Advisor's total average return is 793% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy. Why Dollar General Stock Tumbled on Tuesday was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
