Track market-moving stories before they get noisy

Mixue has flooded Chinese cities with 45-cent soft-serve cones and has more stores than McDonald's.

Key Takeaways Back-to-school spending is projected to hit a record $146.8 billion. Value retailers could benefit as shoppers prioritize deals and promotions. AI, semiconductor and online retail ETFs offer additional exposure. Back-to-school and college is one of the busiest shopping seasons (mid-July to mid-September) in the United States. As of early August, shoppers had completed 44% of their average shopping lists, up significantly from 23% in early July, according to the National Retail Federation (NRF).

However, the timing of remaining purchases largely depends on back-to-school deadlines, with 52% of K-12 shoppers and 48% of college shoppers saying they expect to finish their shopping by one to two weeks before school begins.

Back-to-School Spending Hits Record HighTotal expected back-to-school spending by K-12 and college shoppers is projected to reach a record $146.8 billion in 2026, up from $128.2 billion in 2025, per NRF. K-12 spending is expected to rise to $43.3 billion from $39.4 billion, while college spending is projected to climb to $103.5 billion from $88.8 billion. The sharp uptick highlights resilient back-to-school demand despite the ongoing consumer efforts to seek value.

Per-Person Spending RisesExpected per-person back-to-school spending is projected to increase for college shoppers to a record $1,438 in 2026, up from $1,326 in 2025. K-12 spending is expected to edge up to $864 from $858. While college spending has risen sharply over the years, K-12 spending has remained relatively stable since reaching $890 in 2023, per NRF.

Back-to-School Shopping Shifts In-StoreBack-to-school shopping is shifting from online channels toward physical value retailers. Online shopping fell from 55% to 50% among K–12 shoppers and from 48% to 41% among college shoppers, while discount-store usage remained relatively resilient. This reflects inflation-conscious consumers seeking deals and consolidating purchases in stores.

The trend puts focus on Target (TGT - Free Report) , which offers exposure to school supplies, apparel, home goods, and college-related purchases. TGT has a Zacks Rank #2 (Buy). State Street Consumer Staples Select Sector SPDR ETF (XLP - Free Report) also deserves a look.

Shoppers Turn to AI and DealsConsumers are increasingly turning to AI to plan back-to-school shopping, with 61% using generative AI and other AI-powered tools to find deals, compare prices and get recommendations, per NRF. This puts the focus on Roundhill Generative AI & Technology ETF (CHAT - Free Report) .

Retailers Focus on ValueRetailers are emphasizing value, with 73% of back-to-school shoppers saying sales and promotions were as good as or better than last year. On average, 48% of purchases were driven by coupons, sales or promotions, highlighting consumers’ focus on deals, per NRF. 

In this regard, Dollar General (DG - Free Report) could be in focus. It is one of the largest discount retailers in the United States. The stock has surged 8.8% over the past month (as of Sept. 4, 2026).

Back-to-School Tech Buying Trends Consumers are also changing their back-to-school electronics preferences. While laptops remain the most popular purchase, fewer shoppers are buying them, partly because schools are increasingly providing devices directly to students.

In fact, 20% of shoppers who are not buying electronics say their schools provide them. Meanwhile, K-12 shoppers are increasingly turning to desktop computers, with the share planning to purchase them rising from 17% in 2021 to 21% in 2026, per NRF.

No wonder, one should note that the pillar of electronics, i.e., semiconductors, is expected to see higher demand. This puts focus on VanEck Semiconductor ETF (SMH - Free Report) .

Online Search Leads InspirationOnline search (about 44%) is the top source of inspiration for college shoppers, followed by friends and family (33%) and Instagram (19%), per NRF. Younger shoppers aged 18-24 also turn heavily to TikTok, Pinterest and retailer apps, while in-store browsing, email advertisements, Facebook and X round out their top 10 sources.As a result, ProShares Online Retail ETF (ONLN - Free Report) should be an ETF to keep an eye on in this regard.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Dollar General (DG - Free Report) is a stock many investors are watching right now. DG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.89, which compares to its industry's average of 28.25. Over the past 52 weeks, DG's Forward P/E has been as high as 19.69 and as low as 11.46, with a median of 13.98.

DG is also sporting a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DG's industry currently sports an average PEG of 2.68. Within the past year, DG's PEG has been as high as 2.91 and as low as 1.96, with a median of 2.29.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DG has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.28.

Finally, investors will want to recognize that DG has a P/CF ratio of 10.24. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 28.62. DG's P/CF has been as high as 11.93 and as low as 6.61, with a median of 8.66, all within the past year.

These are just a handful of the figures considered in Dollar General's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DG is an impressive value stock right now.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Past performance is not an indicator of future performance. This post is illustrative and educational and is not a specific offer of products or services or financial advice. Information in this article is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Dollar General Today

DG

Dollar General

$126.37 +3.48 (+2.83%)

As of 12:46 PM Eastern

$95.11▼

$158.231.87%

16.43

$134.65

It’s taken years of store rationalizations, divestitures, concept launches, and streamlined operations to get here, but dollar stores such as Dollar General NYSE: DG and Dollar Tree NASDAQ: DLTR now look better positioned to recover more of the value lost over the past few years.

The question in late Q3 2026 isn’t so much which is the better buy as which is the better fit, since each offers something different.

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Either way, both have strong, strengthening market support and a high likelihood of setting fresh highs by year-end or early in 2027.

Dollar Tree Today

$125.42 -2.84 (-2.21%)

As of 12:45 PM Eastern

$84.71▼

$142.4015.31

$130.36

Despite mixed price action after the reports, the fiscal Q2 results triggered bullish commentary and action from analysts.

MarketBeat’s Dollar General analyst forecasts and forecasts for Dollar Tree both show solid coverage, consensus Hold ratings, and bullish biases within the data.

While consensus targets offer limited upside, the trend matters, with the high ends indicating the stocks could eventually challenge longer-term highs if the recovery continues.

Institutional support is robust, with the group owning 92% of Dollar General, the larger by market cap, and nearly 98% of Dollar Tree. Activity has been mixed over the trailing 12 months (TTM), with buyers in the mix and at least one quarter in distribution. The critical takeaway, however, is that TTM activity is bullish, with buying spiking in the weeks before the companies released their fiscal Q2 reports on Aug. 27. Activity reached unusually high levels, with selling limited, reflecting confidence in their turnarounds and long-term value.

Tariff Impacts Cloud Core Strengths in Dollar General and Dollar TreeThe dollar stores posted solid Q2 results, with revenue up 5.2% at Dollar General and 7% at Dollar Tree. Both outperformed expectations, underpinned by positive comps and strengths across categories. Comps improved on traffic and tickets, highlighting resilience in both business models amid consumer headwinds. The big difference is that Dollar General outperformed by a significant margin, as analysts expected greater strength from Dollar Tree given its scale. It is less than half the size in revenue and can grow at a faster percentage pace with fewer revenue dollars.

Margins were good and underpin a robust capital return. Each reported significant strength despite the impact of tariff refunds, making the results even stronger. Investors should focus on improved gross and operating margins, accelerated bottom-line growth, and the expectation that strength could continue if traffic, pricing and expense control hold up. Guidance likewise includes the impact of tariff refunds, but once backed out, forecasts remain above market expectations.

Capital Returns Point to Higher DG and DLTR Share PricesCapital returns factor into the stock price outlook, although, again, there are differences to consider. Dollar General is more of a well-rounded capital-returning stock, paying a dividend and buying back shares. It hasn’t bought shares so far this fiscal year, which is a headwind, but revealed plans for up to $700 million in the back half, approximately 2.6% of the pre-release market cap and just under half the available authorization. The DG dividend is equally attractive, yielding about 1.9% as of late August and accounting for about 30% of the earnings forecast. Dollar Tree does not pay dividends, choosing instead to aggressively buy shares, and reduced its count by an average of 8.5% year-over-year (YOY) in Q1 and 7.9% in the first half.

The chart price action shows a mixed reaction after the release, but it continues to show support near the middle of its trading range, reflecting strong institutional buying. Near-term dips remain a risk, but institutional support may help contain the downside. One plausible outcome is that buyers will meet price weakness and eventually tip the scales. In this scenario, DG and DLTR could trend sideways in early to mid Q3 while the market waits to see what happens with economic data such as labor and retail sales. Labor data, for one, continues to send mixed signals but still points to generally stable conditions, with ample availability relative to historic norms, declining turnover, and wage growth.

The biggest risk these stores face is competition. They tend to operate in different regions and target different demographics when they overlap, but they compete with big-box stores like Walmart NASDAQ: WMT, Costco NASDAQ: COST, and Kroger NYSE: KR, which fight tooth and nail for consumer traffic. They have the scale to attract shoppers and keep them in the store because of the wide variety of necessities they provide. Short-sellers do not appear to be a major risk. In the low single digits, short interest is not a hurdle, and what there is is down from peaks set earlier this year. Catalysts include outperformance in the current and upcoming quarters, margin strength, and persistent capital returns.

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For the quarter ended July 2026, Dollar General (DG - Free Report) reported revenue of $11.29 billion, up 5.2% over the same period last year. EPS came in at $2.23, compared to $1.86 in the year-ago quarter.

The reported revenue represents a surprise of +1% over the Zacks Consensus Estimate of $11.18 billion. With the consensus EPS estimate being $2.00, the EPS surprise was +11.5%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Dollar General performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Ending store count: 21,148 compared to the 21,152 average estimate based on 22 analysts.Total selling square footage: 161.52 Msq ft versus the 22-analyst average estimate of 161.41 Msq ft.Same-Store Sales growth: 3.5% compared to the 2.6% average estimate based on 22 analysts.Store closings: 33 versus 24 estimated by 19 analysts on average.New store openings: 126 versus 132 estimated by 19 analysts on average.Net Sales per square foot: $69.90 versus the 17-analyst average estimate of $69.13.Net Sales Per Store: $0.53 million compared to the $0.53 million average estimate based on 15 analysts.Net Sales by Category- Consumables: $9.26 billion versus $9.21 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +5% change.Net Sales by Category- Seasonal: $1.19 billion compared to the $1.15 billion average estimate based on seven analysts. The reported number represents a change of +7.4% year over year.Net Sales by Category- Home products: $536.57 million versus the seven-analyst average estimate of $532.85 million. The reported number represents a year-over-year change of +4.8%.Net Sales by Category- Apparel: $303.09 million versus the seven-analyst average estimate of $300.55 million. The reported number represents a year-over-year change of +4.5%.View all Key Company Metrics for Dollar General here>>>

Shares of Dollar General have returned -4.6% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Five Below’s Turnaround Is Working—But Has the Stock Run Too Far?Dollar General NYSE: DG reported second-quarter fiscal 2026 results that management said exceeded expectations, citing comparable-sales growth, operating-margin expansion and double-digit earnings-per-share growth. The company also raised its full-year outlook and said it plans to resume share repurchases in the third quarter.

Chief Executive Officer Todd Vasos said second-quarter net sales totaled $11.3 billion, compared with $10.7 billion in the prior-year period. Same-store sales increased 3.5%, driven by a 2% increase in customer traffic and 1.5% average basket growth. The quarter marked Dollar General’s fifth consecutive quarter of traffic growth, Vasos said.

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Dollar Tree’s Turnaround Is Starting to Take RootAll four merchandising categories posted positive comparable sales for the sixth consecutive quarter, with non-consumables again growing faster than consumables. The company said it gained market share in both dollars and units in highly consumable products, while also expanding share in non-consumables.

Tariff Refunds Lift Results, Fund Customer Investments Chief Financial Officer Donny Lau said gross profit as a percentage of sales increased 127 basis points to 32.6%. The improvement reflected tariff refunds, a lower LIFO provision and lower distribution costs, partly offset by increased markdowns and transportation costs.

MarketBeat Week in Review – 06/01 - 06/05Tariff refunds, net of gross-margin-related reinvestment, contributed approximately 81 basis points to gross margin during the quarter, Lau said. After related reinvestment, tariff refunds added about 66 basis points to operating margin and approximately $0.25 to quarterly diluted earnings per share.

Dollar General used a substantial portion of tariff-refund proceeds to support its customer value proposition, according to Vasos. Those investments included targeted promotions around summer holidays, lower everyday prices and customer-facing SG&A spending, including increased marketing expense.

Operating profit rose 29.2% to $769 million, while operating margin increased 126 basis points to 6.8%. SG&A expense was flat as a percentage of sales at 25.8%. Diluted EPS increased 33% to $2.48.

Lau said the company saw continued improvement in shrink and damages, despite lapping a 108-basis-point improvement in shrink during the second quarter of 2025. For the full year, Dollar General continues to expect shrink and damages to provide roughly 50 basis points of incremental gross-margin expansion from the 2025 base.

Raised Full-Year Outlook and Capital Returns Based on first-half performance, business momentum and the impact of tariff refunds after reinvestments, Dollar General raised its fiscal 2026 guidance. The company now expects:

Net sales growth of 4% to 4.3%. Same-store sales growth of 2.5% to 2.9%. Diluted EPS of $7.80 to $8.00, including the approximately $0.25 second-quarter benefit from tariff refunds after reinvestments. The outlook assumes an effective tax rate of approximately 24.5% and includes up to $700 million of share repurchases in the second half. Lau said Dollar General plans to repurchase up to $700 million of common stock, funded with cash on hand, beginning in the third quarter. The company had previously expected to resume repurchases during 2027 under its long-term financial framework.

Year-to-date operating cash flow totaled $1.5 billion through the second quarter. Merchandise inventories ended the quarter at $6.6 billion, essentially flat from a year earlier and down 2.7% on an average per-store basis. The board also approved a quarterly cash dividend of $0.59 per share for the second quarter.

For the second half, Lau said the company expects gross-margin expansion despite elevated fuel costs and difficult comparisons. Expected drivers include additional shrink and damage improvement, non-consumable merchandising, supply-chain productivity, category management and the DG Media Network. The company does not expect tariff refunds, net of reinvestment, to have a material impact in the second half because it received the majority of the anticipated refund amount in the second quarter.

Consumer Pressure Supports Traffic, Value Focus Vasos said Dollar General’s core customer remains financially constrained by persistent inflation and volatile fuel prices. He said customers are reducing trips, purchasing less per visit and shopping closer to home, while higher-income consumers continue to trade into Dollar General more frequently.

The company has more than 21,000 stores within five miles of approximately 75% of the U.S. population, according to Vasos. Its delivery operations contributed an estimated 40 basis points to comparable-sales growth during the quarter.

Dollar General continues to emphasize its $1 assortment, including more than 2,000 items at or below $1 and more than 600 rotating Value Valley items priced at $1. Value Valley comparable sales increased more than 16% in the second quarter. The company expanded $1 off-shelf displays to more than 9,000 stores and said those locations are generating incremental comparable sales above the rest of the chain.

Chief Operating Officer Emily Taylor said Dollar General’s collective delivery offerings, including myDG delivery, DoorDash and Uber Eats, have an estimated sales incrementality rate of about 80%. Digitally engaged and delivery customers are more than twice as productive as non-digitally engaged customers, she said. The company estimates that more than 1 million customers first engaged with Dollar General through delivery before becoming in-store shoppers.

Remodels, Store Growth and Digital Initiatives Dollar General is pursuing four strategic growth pillars: enhancing the customer experience, elevating its brand, improving enterprise-wide efficiency and extending its reach. Combined non-consumable comparable sales increased 4.5% in the second quarter, led by toys.

The company completed 1,324 Project Renovate remodels and 1,422 Project Elevate projects through the end of the second quarter. It still expects to complete 2,000 Renovate remodels and 2,250 Elevate projects during 2026. Dollar General targets annualized comparable-sales lifts of roughly 6% for Renovate stores and 3% for Elevate stores.

During the quarter, the company opened 125 U.S. stores as part of its plan to open 450 stores in 2026. It also opened one Mi Súper Dollar General store in Mexico, bringing its Mexican store count to 22. Dollar General expects to open approximately 10 stores in Mexico this year.

Taylor said the company is also rolling out its DGTP ’26 format, which changes store layouts and product adjacencies to create clearer destinations for food and snacks, health and beauty, and home and seasonal merchandise. Vasos added that Dollar General is continuing SKU rationalization through more targeted tests in lower-volume and higher-shrink locations.

About Dollar General (NYSE:DG)Dollar General Corporation is a U.S.-based variety and discount retailer operating a large network of small-format stores that serve primarily rural and suburban communities. The company is publicly traded on the New York Stock Exchange under the ticker DG and is headquartered in the Nashville/Goodlettsville, Tennessee area. Founded in 1939, Dollar General has grown from a regional operation into one of the nation's prominent low-price retailers focused on convenience and value.

Dollar General's stores offer a wide assortment of everyday consumables and household goods, including food and beverage items, cleaning supplies, health and beauty products, paper goods, apparel basics, seasonal merchandise and small household items.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Should You Invest $1,000 in Dollar General Right Now?Before you consider Dollar General, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Dollar General wasn't on the list.

While Dollar General currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

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Dollar General Corporation (DG) Q2 2027 Earnings Call Transcript

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Dollar General plans to increase its selection of $1 items by the end of the year. Jakub Porzycki/NurPhoto via Getty Images Dollar General is doubling down on the $1 price point.

A selection of 600 items priced at $1 each, which the chain calls "Value Valley," had comparable sales growth of 16% during the company's second quarter — a much faster clip than broader same-store sales growth of 3.5%, it said on Thursday.

In total, Dollar General stocks about 2,000 items that cost $1 each. It expects to grow that number by 40% in the second half of 2026 in time for the holiday shopping season, COO Emily Taylor said on the retailer's earnings call.

Expect that selection to grow "even more so into 2027," CEO Todd Vasos said. "We have got real plans to expand that $1 price point to offer even more value for the consumer," he added.

Dollar stores used to be true to their name, with everything on their shelves priced at $1. Inflation has changed that, though: In 2021, Dollar Tree raised prices on most items to $1.25 and has since experimented with items priced at several dollars each.

That's a different direction than Dollar General appears to be taking, said Arielle Feger, a senior analyst at EMARKETER, Business Insider's sister company.

While Dollar General has long sold items that cost well over $1 each, many of those items are food and other consumables that draw people into the store, Feger said. The chain began adding freezers stocked with food items priced at $1 each to its stores earlier this year, Vasos said on the company's last earnings call in June.

Dollar Tree's $1 item selection, by contrast, skews more toward discretionary items, such as home decor and toys.

Dollar General's strategy is similar to the classic grocery store strategy of selling eggs and milk as cheaply as possible — even at a loss, potentially — to boost overall sales, Feger said.

"It gets people in the door, and it gets them to continue to come back," she said.

That strategy is particularly meaningful to customers who are trying to save money, Vasos said on Thursday's earnings call.

Dollar General's average customer is "still gainfully employed" and "is seeing some gains in her income levels," the CEO said. But inflation and rising gas prices this year have offset that income gain, Vasos said, leading many customers to visit its stores more often and buy less each trip.

By expanding its selection of $1 items, Dollar General will likely continue to attract customers, Feger said.

"Consumers are habitual," she said. "We go to the same places, we expect the same things."

Do you have a story idea about Dollar General or Dollar Tree? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.

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Dollar General plans to pilot a subscription and loyalty program by the end of the year and launch a full rollout in 2027, with management expecting such initiatives to “not just support the growth in digital, but also help support the growth in our media network going forward.”

Dollar General Corp (NYSE:DG) on Thursday reported better-than-expected second-quarter financial results and raised its FY26 guidance above estimates.

The discount retailer reported net sales of $11.29 billion, up 5.2% year over year. Revenue beat the consensus estimate of $11.197 billion. Earnings rose 33% to $2.48 per share, beating the Street estimate of $2.01. The result included a roughly 25-cent benefit from tariff refunds after related reinvestments.

Dollar General raised its fiscal 2026 earnings guidance to between $7.80 and $8 per share, up from its previous range of $7.20 to $7.45. The consensus estimate is $7.41 per share.

The company also increased its sales forecast to between $44.43 billion and $44.56 billion, compared with its previous range of $44.31 billion to $44.52 billion. Wall Street expects sales of $44.43 billion.

“We are pleased with our second quarter performance, which included balanced topline growth, healthy operating margin expansion and strong double-digit EPS growth,” said Todd Vasos, Dollar General’s chief executive officer. “These results, which exceeded our expectations even before considering the benefit from tariff refunds after related reinvestments, are a testament to the strong execution, strategic direction, and continued dedication of our team. I want to thank our associates in our stores, distribution centers, private fleet and store support center for the work they do every day to fulfill our mission of Serving Others.”

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Dollar General shares rose 1.2% to $127.45 in pre-market trading

These analysts made changes to their price targets on Dollar General following earnings announcement.

Goldman Sachs analyst Kate McShane maintained the stock with a Neutral and raised the price target from $128 to $141. BMO Capital analyst Kelly Bania maintained the stock with a Market Perform and raised the price target from $120 to $135. Considering buying DG stock? Here’s what analysts think:

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Key Takeaways DG Q2 EPS rose 19.9% to $2.23 as net sales increased 5.2% to $11.29 billion.Same-store sales gained 3.5% on higher traffic and transactions, with growth across all major categories.Gross margin rose 127 bps to 32.6%, while DG lifted fiscal 2026 sales, comps and EPS guidance. Dollar General Corporation (DG - Free Report) reported second-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Both net sales and earnings increased year over year.

Dollar General posted quarterly adjusted earnings of $2.23 per share, which topped the Zacks Consensus Estimate of $2.00. The bottom line increased 19.9% from $1.86 reported in the year-ago quarter. On a GAAP basis, earnings were $2.48, up 33.3% from $1.86 in the year-ago quarter.

Net sales of $11,290.4 million rose 5.2% year over year and beat the consensus estimate of $11,178 million. The increase was driven by positive contributions from new stores and growth in same-store sales, partially offset by store closures.

Same-store sales improved 3.5%, reflecting a 2% rise in customer traffic and a 1.5% increase in average transaction amount. The quarter marked positive comparable-sales growth across all major categories, including consumables, seasonal, home products and apparel.

DG’s Key Metrics & Margin InsightsConsumables sales increased 5% year over year to $9,263 million. Seasonal sales rose 7.4% to $1,187.7 million. Home products sales advanced 4.8% to $536.6 million, while apparel sales increased 4.5% to $303.1 million.

Gross margin expanded 127 basis points to 32.6%. The improvement primarily reflected tariff refunds, a lower LIFO provision and reduced distribution costs, partly offset by higher markdowns and transportation costs. Tariff refunds, after related reinvestments, contributed about 81 basis points to the gross margin.

SG&A expenses were essentially flat at 25.8% of sales. Higher depreciation and amortization expense was offset by lower rent as a percentage of sales.

Operating profit jumped 29.2% to $769.2 million, with operating margin reaching 6.8% compared with 5.6% a year ago.

DG’s Financial SnapshotDollar General ended the quarter with cash and cash equivalents of $1.59 billion, up from $1.28 billion a year earlier. Long-term obligations declined to $4.56 billion from $5.73 billion, while shareholders' equity increased to $9.29 billion from $8.01 billion.

For the first 26 weeks of fiscal 2026, net cash provided by operating activities was $1.50 billion compared with $1.81 billion in the year-ago period. Merchandise inventories were $6.6 billion at quarter-end, with average inventory per store down 2.7% year over year.

DG’s Store UpdatesDuring the second quarter of fiscal 2026, DG opened 125 new stores in the United States and one in Mexico. It remodeled 665 stores through Project Renovate and 711 through Project Elevate, while relocating five stores. The company ended the quarter with 21,148 stores, and total selling square footage increased 1.9%.

Dollar General continues to plan about 4,730 real estate projects in fiscal 2026.

What to Expect From DG in Fiscal 2026?Dollar General raised its fiscal 2026 net sales growth forecast to 4-4.3% from 3.7-4.2%. The same-store sales growth outlook increased to 2.5-2.9% from 2.2-2.7%.

The company also lifted EPS guidance to $7.80-$8.00 from $7.20-$7.45. The updated range includes an estimated $0.25 second-quarter benefit from tariff refunds after related reinvestments, while management does not expect a material tariff-refund impact in the second half.

Shares of this Zacks Rank #2 (Buy) company have gained 13.8% in the past three months compared with the industry’s growth of 0.4%.

Image Source: Zacks Investment Research

Other Key PicksRoss Stores, Inc. (ROST - Free Report) is one of the largest off-price apparel and home fashion chains in the United States. ROST currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The consensus estimate for Ross Stores’ current fiscal-year sales and earnings implies growth of 11.7% and 32.8%, respectively, from the year-ago reported figures. ROST delivered a trailing four-quarter earnings surprise of 11.2%, on average.

Dollar Tree, Inc. (DLTR - Free Report) operates retail discount stores under the Dollar Tree and Dollar Tree Canada brands in the United States and Canada. DLTR currently carries a Zacks Rank of 2. DLTR delivered a trailing four-quarter earnings surprise of 32.1%, on average.

The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year sales and earnings calls for growth of 6.6% and 21.7%, respectively, from the year-ago reported figures.

Target Corporation (TGT - Free Report) operates as a general merchandise retailer in the United States. TGT currently carries a Zacks Rank of 2. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.

The Zacks Consensus Estimate for Target’s current fiscal-year sales and earnings calls for growth of 4.6% and 37.7%, respectively, from the year-ago reported figures.

Key Takeaways Dollar General's Q2 consensus sees $11.17B in revenues and $2.00 EPS, up 4.2% and 7.5% year over year.Value-seeking traffic, merchandising gains and shrink reduction may support DG's sales and margins.DG trades at 15.96 times forward earnings, below the industry, S&P 500 and its 12-month median. Dollar General Corporation (DG - Free Report) is set to report second-quarter fiscal 2026 earnings results on Aug. 27, before the opening bell. Investors will closely assess the discount retailer’s ability to drive traffic and sales growth in a still-challenging consumer environment, along with signs of sustained margin improvement and its outlook for the remainder of the year.

The Zacks Consensus Estimate for second-quarter revenues stands at $11.17 billion, indicating a 4.2% increase from the prior-year reported figure. On the earnings front, the consensus estimate has been stable at $2.00 per share over the past 30 days and implies a year-over-year jump of 7.5%.

Dollar General has a trailing four-quarter earnings surprise of 21%, on average. In the last reported quarter, DG surpassed the Zacks Consensus Estimate by 5.8%.

Image Source: Zacks Investment Research

What the Zacks Model Predicts for DGAs investors prepare for Dollar General's second-quarter announcement, the question looms regarding an earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Dollar General this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dollar General has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors to Note Ahead of DG’s Q2 EarningsDollar General’s second-quarter performance is likely to have benefited from continued customer traffic and growing demand for value. The company entered the quarter with sales trends holding up, while trade-in activity from higher-income households was accelerating as inflation and elevated fuel costs encouraged consumers to seek lower-priced alternatives. Dollar General’s convenient store footprint, competitive everyday pricing and targeted promotions should have helped it attract both its core customer and shoppers trading down from other retail channels. Its emphasis on affordability and convenience is likely to have attracted customers looking to stretch household budgets.

The traffic backdrop is likely to have been reinforced by Dollar General’s merchandising and customer-experience initiatives. The company has been strengthening its entry-price-point assortment, private brands and Value Valley offering while maintaining momentum in non-consumables. At the same time, delivery has been fortifying Dollar General’s convenience proposition, as customers using the service tend to place larger orders and shop with the company more frequently. Continued investments in store remodels through Project Renovate and Project Elevate also appear positioned to improve the shopping experience and support productivity across the mature store base.

Beyond sales, ongoing gross-margin initiatives are likely to have supported profitability. Dollar General entered the quarter with momentum in shrink reduction and lower inventory damages, while category-management efforts, supply-chain productivity, non-consumables merchandising and the DG Media Network remained important margin drivers. The company also ended the first quarter of fiscal 2026 with inventory at a level it considered appropriate to support sales growth and improved in-stock availability. Together, better inventory discipline, shrink improvement and greater supply-chain efficiency may have helped offset some cost pressures and supported the earnings picture.

Even so, the operating backdrop remained challenging. Dollar General’s core customers continued to face pressure from inflation and reduced government assistance, prompting some shoppers to cut back on household spending and manage budgets more tightly. Such pressure can increase trip frequency while constraining basket size, particularly among lower-income customers. Higher promotional activity and any SG&A deleverage could have tempered the benefit from the company’s margin-improvement initiatives during the quarter.

Dollar General Stock Price PerformanceDollar General, which competes with Target Corporation (TGT - Free Report) and Costco Wholesale Corporation (COST - Free Report) , has seen its shares gain 9.9% over the past year compared with the industry’s rise of 11.5%. Shares of Target and Costco have advanced 0.7% and 70.3%, respectively.
 

Image Source: Zacks Investment Research

Does DG Present a Strong Case for Value Investing?Dollar General is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 15.96. This valuation reflects a discount compared to the industry’s average of 30.14 and the S&P 500's P/E of 20.43. The stock also appears undervalued compared to its 12-month median P/E level of 16.21.

Dollar General is trading at a discount to Target (with a forward 12-month P/E ratio of 17.08) and Costco (42.19).

Image Source: Zacks Investment Research

Final Words on Dollar General StockDollar General enters its second-quarter earnings release with several encouraging fundamentals, including resilient traffic trends, growing appeal among value-seeking consumers and continued progress on merchandising, inventory and margin initiatives. However, pressure on its core customer, higher promotional activity and lingering cost headwinds warrant some caution, while the earnings setup does not provide a clear signal of a beat this time. The stock’s discounted valuation adds some support to the investment case. Current shareholders may consider holding their positions, while prospective investors could wait for the earnings release before taking a fresh position.

In its upcoming report, Dollar General (DG - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $2.00 per share, reflecting an increase of 7.5% compared to the same period last year. Revenues are forecasted to be $11.17 billion, representing a year-over-year increase of 4.2%.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Bearing this in mind, let's now explore the average estimates of specific Dollar General metrics that are commonly monitored and projected by Wall Street analysts.

The consensus estimate for 'Net Sales by Category- Consumables' stands at $9.21 billion. The estimate indicates a change of +4.4% from the prior-year quarter.

It is projected by analysts that the 'Net Sales by Category- Seasonal' will reach $1.15 billion. The estimate points to a change of +4.2% from the year-ago quarter.

According to the collective judgment of analysts, 'Net Sales by Category- Home products' should come in at $532.85 million. The estimate indicates a change of +4.1% from the prior-year quarter.

The combined assessment of analysts suggests that 'Net Sales by Category- Apparel' will likely reach $300.55 million. The estimate indicates a change of +3.7% from the prior-year quarter.

Based on the collective assessment of analysts, 'Ending store count' should arrive at 21,152 . Compared to the current estimate, the company reported 20,746 in the same quarter of the previous year.

Analysts' assessment points toward 'Total selling square footage' reaching 161 millions of square feet. The estimate compares to the year-ago value of 158 millions of square feet.

The consensus among analysts is that 'Store closings' will reach 25 . Compared to the current estimate, the company reported 40 in the same quarter of the previous year.

Analysts expect 'New store openings' to come in at 132 . Compared to the present estimate, the company reported 204 in the same quarter last year.

The collective assessment of analysts points to an estimated 'Net Sales per square foot' of $69.13 . Compared to the present estimate, the company reported $67.70 in the same quarter last year.

View all Key Company Metrics for Dollar General here>>>

Shares of Dollar General have demonstrated returns of +5.3% over the past month compared to the Zacks S&P 500 composite's +2.3% change. With a Zacks Rank #2 (Buy), DG is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Dollar General (DG - Free Report) is a stock many investors are watching right now. DG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.89. This compares to its industry's average Forward P/E of 31.17. Over the last 12 months, DG's Forward P/E has been as high as 19.69 and as low as 11.46, with a median of 13.98.

Investors will also notice that DG has a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DG's PEG compares to its industry's average PEG of 3.25. Over the last 12 months, DG's PEG has been as high as 2.91 and as low as 1.96, with a median of 2.29.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DG has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.35.

Finally, investors should note that DG has a P/CF ratio of 10.24. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 29.85. DG's P/CF has been as high as 11.93 and as low as 6.61, with a median of 8.66, all within the past year.

These are only a few of the key metrics included in Dollar General's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DG looks like an impressive value stock at the moment.

Dollar General (DG - Free Report) ended the recent trading session at $120.08, demonstrating a -2.6% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.52% for the day. On the other hand, the Dow registered a loss of 0.51%, and the technology-centric Nasdaq decreased by 0.32%.

The discount retailer's shares have seen a decrease of 1.96% over the last month, not keeping up with the Retail-Wholesale sector's gain of 3.74% and the S&P 500's gain of 3.3%.

The investment community will be paying close attention to the earnings performance of Dollar General in its upcoming release. The company is slated to reveal its earnings on August 27, 2026. In that report, analysts expect Dollar General to post earnings of $2 per share. This would mark year-over-year growth of 7.53%. Alongside, our most recent consensus estimate is anticipating revenue of $11.17 billion, indicating a 4.17% upward movement from the same quarter last year.

DG's full-year Zacks Consensus Estimates are calling for earnings of $7.37 per share and revenue of $44.4 billion. These results would represent year-over-year changes of +7.59% and +3.92%, respectively.

Any recent changes to analyst estimates for Dollar General should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Dollar General possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Dollar General is currently exchanging hands at a Forward P/E ratio of 16.74. For comparison, its industry has an average Forward P/E of 29.32, which means Dollar General is trading at a discount to the group.

It's also important to note that DG currently trades at a PEG ratio of 1.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Retail - Discount Stores industry stood at 2.51 at the close of the market yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 33% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Dollar General (DG - Free Report) , which belongs to the Zacks Retail - Discount Stores industry, could be a great candidate to consider.

This discount retailer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 12.85%.

For the most recent quarter, Dollar General was expected to post earnings of $1.89 per share, but it reported $2 per share instead, representing a surprise of 5.82%. For the previous quarter, the consensus estimate was $1.61 per share, while it actually produced $1.93 per share, a surprise of 19.88%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Dollar General. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Dollar General has an Earnings ESP of +1.61% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 27, 2026.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--Dollar General Corporation (NYSE: DG) today announced that it plans to release its financial results for the fiscal 2026 second quarter ended July 31, 2026, on August 27, 2026. In connection with the release, Todd Vasos, chief executive officer, and Donny Lau, chief financial officer, will host a conference call on August 27, 2026, at 8:00 a.m. CT/9:00 a.m. ET. During the call, the company will discuss the earnings results and may discuss material busines.

Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.

Should You Consider Dollar General?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Dollar General (DG - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $2.03 a share, just 30 days from its upcoming earnings release on August 27, 2026.

By taking the percentage difference between the $2.03 Most Accurate Estimate and the $2 Zacks Consensus Estimate, Dollar General has an Earnings ESP of +1.61%. Investors should also know that DG is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

DG is one of just a large database of Retail and Wholesale stocks with positive ESPs. Another solid-looking stock is Advance Auto Parts (AAP - Free Report) .

Slated to report earnings on August 13, 2026, Advance Auto Parts holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $0.88 a share 16 days from its next quarterly update.

The Zacks Consensus Estimate for Advance Auto Parts is $0.81, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +8.04%.

Because both stocks hold a positive Earnings ESP, DG and AAP could potentially post earnings beats in their next reports.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DG over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

In the latest trading session, Dollar General (DG - Free Report) closed at $123.20, marking a -1.24% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.89%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq added 1.29%.

Coming into today, shares of the discount retailer had gained 10.93% in the past month. In that same time, the Retail-Wholesale sector gained 1.33%, while the S&P 500 lost 0.63%.

The investment community will be closely monitoring the performance of Dollar General in its forthcoming earnings report. In that report, analysts expect Dollar General to post earnings of $2 per share. This would mark year-over-year growth of 7.53%. Meanwhile, the latest consensus estimate predicts the revenue to be $11.17 billion, indicating a 4.17% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.37 per share and revenue of $44.4 billion. These totals would mark changes of +7.59% and +3.92%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Dollar General. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Right now, Dollar General possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Dollar General has a Forward P/E ratio of 16.94 right now. This denotes a discount relative to the industry average Forward P/E of 30.08.

One should further note that DG currently holds a PEG ratio of 1.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.65 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 21, finds itself in the top 9% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

HomeStock IdeasLong IdeasConsumer Staples Analysis

SummaryDollar General remains a buy, with shares still undervalued around $127 despite a recent rally.DG's recent quarterly results show positive momentum: 1.4% traffic growth and a 2% same-store sales increase.Risks include market saturation, rising competition from Aldi, Walmart, and Amazon, and the threat of grocery delivery eroding DG’s convenience edge.I advise moderate position sizing as DG approaches potential saturation and faces intensifying headwinds. M. Suhail/iStock Editorial via Getty Images

Dollar General (DG) has topped $127, rebounding from a hard crash earlier this year. It’s fair to wonder if the rally is over, but the valuation remains reasonable and the quarterly report some weeks back points

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of DG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Major Retailer’s Impact Now Benefits More Than Half of All U.S. Counties Nationwide

GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--Today, Dollar General (NYSE: DG) announced an additional $1 million donation to Feeding America® to extend its ongoing partnership, helping support the nearly 48 million people, including 14 million children, who experience food insecurity in the United States. Since 2019, Dollar General has provided more than $6 million in financial support, and in-kind food donations from stores and distribution centers have now provided the equivalent of more than 90 million meals* to Feeding America local food banks serving more than half of U.S. counties.

“Dollar General is proud to continue our partnership with Feeding America to help meet the needs of individuals and families in our hometown communities,” said Denine Torr, Dollar General’s vice president of corporate social responsibility and philanthropy. “We are honored to support Feeding America’s work in more than half of all counties nationwide. This milestone reflects our shared commitment to expanding food access and making a meaningful difference for our neighbors who depend on these vital resources.”

"Feeding America is one of the nation’s most effective food rescue and distribution networks—moving food quickly, safely and reliably," said Brit Videbeck, Feeding America's chief supply chain officer. "We're proud to partner with Dollar General, whose commitment through generous product donations and financial support helps ensure perfectly good food that neighbors want and need can make it to communities nationwide."

While Dollar General is not a grocer, the Company understands millions of Americans rely on the Company to provide convenient and affordable access to everyday household items, including food. Additionally, the Company continues to provide Better For You foods and resources, health and wellness products and services, and proudly serves as a USDA MyPlate National Strategic Partner through its Center for Nutrition Policy and Promotion (CNPP) Nutrition Communicators Network.

*According to the USDA, 1.2 pounds is the equivalent to one meal.

About Dollar General Corporation

Dollar General Corporation (NYSE: DG) is proud to serve as America’s neighborhood general store. Founded in 1939, Dollar General lives its mission of Serving Others every day by providing access to affordable products and services for its customers, career opportunities for its employees, and literacy and education support for its hometown communities. As of May 1, 2026, the Company’s 21,055 Dollar General, DG Market, DGX and pOpshelf stores across the United States and Mi Súper Dollar General stores in Mexico provide everyday essentials including food, health and wellness products, cleaning and laundry supplies, self-care and beauty items, and seasonal décor from our high-quality private brands alongside many of the world’s most trusted brands such as Coca Cola, PepsiCo/Frito-Lay, General Mills, Hershey, J.M. Smucker, Kraft, Mars, Nestlé, Procter & Gamble and Unilever.

© jetcityimage / iStock Editorial via Getty Images

Jim Cramer used his Monday CNBC Stop Trading segment to flag a familiar play he’s seeing coming back into focus. Cramer noted that when the cost of living squeezes household budgets, capital rotates into discount retailers, and the hedge fund crowd tends to get there first. That’s why he says he’s keeping an eye on Dollar General (NYSE:DG | DG Price Prediction).

Why Rising Gas Prices Send Hedge Funds Into Dollar General Jim Cramer bluntly connected the dots he sees between rising oil prices and soaring discount retailer performance. “When things go up for the consumer, we go back to these stocks,” he said, before laying out his trade idea: “Dollar General just is a favorite of the hedge fund crowd. It’s kind of an algorithm that says, oh, oil goes up, gasoline therefore goes up, go buy Dollar General.”

He also pointed to Dollar Tree’s upgrade last week, which he said drove the stock from $85 to $130 in a couple of months, and flagged Walmart as the validation to watch: “I’m waiting for it to impact Walmart, which is a big winner.”

The Consumer Squeeze Is Reviving the Trade-Down Economy WTI crude sits at above $78 per barrel, well off the 12-month high of $114.58 on April 7, 2026, and the U.S. regular gasoline average has eased to $3.78 per gallon. But retail pump prices spent much of the spring above $4.50, and University of Michigan consumer sentiment collapsed to 44.8 in May 2026, approaching recessionary levels. Trade-down behavior into value shopping is exactly what that combination could produce.

Dollar General’s Q1 FY2027 report filed on June 2, mapped directly onto Cramer’s thesis. Diluted EPS came in at $2.00 versus $1.88 consensus, revenue was $10.79 billion, same-store sales rose 2.0%, and gross margin expanded 65 basis points to 31.6%.

CEO Todd Vasos said results “exceeded our expectations as strong operating margin expansion more than offset the impact of severe winter weather and higher fuel costs.” Management then raised FY2026 EPS guidance to $7.20-$7.45.

Dollar General has climbed 8.7% over the past month and was up 4.73% on the day of Cramer’s segment, trading at $124.55. Shares still carry a modest trailing P/E ratio of 17.

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Dollar Tree, Walmart, and Five Below As Other Potential Beneficiaries Dollar Tree (NASDAQ:DLTR) is up 13.23% over the past month. Q1 delivered adjusted EPS of $1.74 versus $1.55 consensus on revenue of $4.98 billion, and management raised the FY26 range to $6.70 to $7.10.

Walmart (NYSE:WMT) reported Q1 FY2027 results showing Walmart U.S. comps up 4.1% ex-fuel and global e-commerce up 26%, with share gains skewing towards upper-income demographics. Walmart trades at a P/E near 41, and shares are down 5.55% over the past month.

Five Below (NASDAQ:FIVE) reported Q1 net sales growth of 32.5% and comparable-store sales growth of 22.7%, with FY26 EPS guidance of $8.65 to $9.05. Shares are up 45.48% over the past year.

What to Watch Next Cramer’s broader argument is that rising household costs could push more consumers toward discount retailers, benefiting Dollar General, Dollar Tree, Walmart, and Five Below. Dollar General’s improving margins and raised earnings guidance suggest that shift may already be underway.

If Walmart’s upcoming results show stronger trade-down activity, the trend could be developing into a broader defensive investment theme rather than a short-term hedge fund trade.

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