Track market-moving stories before they get noisy

3.26K Followers

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

1.3K Followers

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.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Walmart didn't make the cut. Grab the names FREE today.

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.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Walmart didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--Dollar General's Back-to-School Season Offers Big Value with $1 Every Day Items and Convenient Delivery Options.

It has been about a month since the last earnings report for Dollar General (DG - Free Report) . Shares have added about 9.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Dollar General due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Dollar General Beats Q1 Earnings Estimates, Raises FY26 ViewDollar General reported first-quarter fiscal 2026 results, wherein the top line missed the Zacks Consensus Estimate, while the bottom line beat the same. Both net sales and earnings increased year over year, reflecting solid execution of its strategic initiatives, positive customer traffic trends and operating margin expansion, which more than offset the impact of severe winter weather and higher fuel costs.

The company witnessed a rise across all major merchandise categories, supported by same-store sales growth and contributions from new stores. Better-than-expected first-quarter bottom-line performance prompted management to lift its fiscal 2026 earnings view.

More on DG’s Q1 PerformanceDollar General posted quarterly earnings of $2.00 per share, which surpassed the Zacks Consensus Estimate of $1.89. The bottom line increased 12.4% from $1.78 reported in the year-ago quarter.

Net sales of $10,787 million rose 3.4% year over year. Revenues narrowly missed the Zacks Consensus Estimate of $10,822 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 2%, reflecting a 1.4% rise in customer traffic and a 0.5% 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 InsightsDollar General’s consumables category generated sales of $8,892.5 million, up 3% from the prior-year quarter. Seasonal sales increased 6% to $1,084.3 million, while home products sales rose 3.1% to $523 million. Apparel sales advanced 6.7% to $287.2 million.

Gross margin expanded 65 basis points to 31.6%, benefiting from higher inventory markups, lower shrink and reduced inventory damages, partly offset by increased markdowns and transportation costs.

SG&A expenses, as a percentage of sales, deleveraged 25 basis points to 25.7%. The increase mainly stemmed from higher depreciation and amortization expenses, utilities and property taxes, partly offset by lower incentive compensation.

Dollar General’s operating profit increased 10.8% to $638.5 million. Operating margin expanded 40 basis points to 5.9%.

DG’s Financial SnapshotDollar General ended the quarter with cash and cash equivalents of $1,353.1 million, long-term obligations of $4,563.1 million and total shareholders’ equity of $8,843.3 million.

Net cash provided by operating activities was $716.2 million in the first quarter. Capital expenditures totaled $352 million, including $203 million for improvements, upgrades, remodels and relocations of existing stores, $73 million for new-store facilities, $62 million for distribution and transportation-related projects and $12 million for information systems and technology-related projects.

DG’s Store UpdatesDuring the quarter, Dollar General opened 190 new stores in the United States and five new stores in Mexico. It remodeled 659 stores through Project Renovate and 711 stores through Project Elevate, while relocating six stores.

Management reiterated plans to execute nearly 4,730 real estate projects in fiscal 2026, including about 450 new stores in the United States and 10 new stores in Mexico, nearly 2,000 Project Renovate remodels, approximately 2,250 Project Elevate remodels and about 20 store relocations.

What to Expect From DG in Fiscal 2026?Dollar General raised its fiscal 2026 earnings per share guidance to $7.20-$7.45 from the prior view of $7.10-$7.35. The company continues to expect net sales growth of 3.7-4.2% and same-store sales growth of 2.2-2.7% for fiscal 2026. Capital expenditures are still projected in the $1.4-$1.5 billion range.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

VGM ScoresCurrently, Dollar General has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dollar General has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerDollar General is part of the Zacks Retail - Discount Stores industry. Over the past month, Target (TGT - Free Report) , a stock from the same industry, has gained 4.4%. The company reported its results for the quarter ended April 2026 more than a month ago.

Target reported revenues of $25.44 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $1.71 for the same period compares with $1.30 a year ago.

For the current quarter, Target is expected to post earnings of $2.21 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Target. Also, the stock has a VGM Score of A.

Dollar General managed to achieve higher traffic and higher transaction amounts with its $1 strategy, driven by the poor consumer sentiment. DG remains a reliable dividend payer, with the quarterly payments well covered by the free cash flow. DG's valuation is attractive compared to the peers, as well as to its historic averages.

Vancouver, British Columbia--(Newsfile Corp. - June 17, 2026) - Dixie Gold Inc. (TSXV: DG) ("Dixie Gold" or the "Issuer") reports on matters pertaining to the Issuer. Appointment of a Chief Executive Officer (CEO) and a Director The Issuer reports that a candidate for the Issuer's vacant Chief Executive Officer (CEO) position approached the Issuer and, after a diligence review of the candidate by the Issuer's board, has been appointed, through a resolution today by the Issuer's board of directors, as herein described.

MORRISVILLE, N.C.--(BUSINESS WIRE)--Anthony Wanger appointed Executive Chairman of DG Matrix.

Dollar General (DG) remains a buy as fundamentals improve, higher-income customer penetration grows, and valuation is attractive at 15x forward earnings. DG's latest quarter showed 3.4% net sales growth, positive traffic, broad-based category strength, and gross margin expansion to 31.6%. Value Valley continues to drive discretionary spending, with 18.4% SSSG, supporting the thesis of a structurally larger demand base.

Dollar General Corporation (NYSE:DG) stock fell on Tuesday after the company reported first-quarter fiscal 2026 results and updated fiscal 2026 guidance.

The discount retailer posted net sales of $10.79 billion, slightly below the consensus estimate of $10.82 billion.

The sales increase of 3.4% was driven by positive sales contributions from new stores and growth in same-store sales, partially offset by the impact of store closures.

Same-Store Sales Rise On Higher Traffic And Transaction GrowthSame-store sales increased 2.0% compared to the first quarter of 2025, reflecting increases of 1.4% in customer traffic and 0.5% in average transaction amount, including growth in each of the consumables, seasonal, apparel, and home products categories.

"We are pleased with our first-quarter EPS performance, which exceeded our expectations as strong operating margin expansion more than offset the impact of severe winter weather and higher fuel costs," said Todd Vasos, Dollar General's chief executive officer. "Our topline results were highlighted by positive customer traffic and balanced category growth,

Margin Expansion Drives Profit GrowthThe company reported a gross profit margin of 31.6%, an increase of 65 basis points, driven primarily by higher inventory markups and lower shrink and inventory damages; partially offset by increased markdowns and transportation costs.

Operating profit increased 10.8% to $638.5 million compared to $576.1 million a year ago.

Earnings came in at $2.00 per share, topping the Street's estimate of $1.88.

Company Lifts Profit GuidanceDollar General reaffirmed its fiscal 2026 guidance, projecting net sales of $44.31 billion to $44.52 billion, roughly in line with analysts' consensus estimate of $44.43 billion.

The company expects net sales growth of about 3.7% to 4.2% in fiscal 2026, compared with 5.2% growth in fiscal 2025.

Dollar General forecasts earnings of $7.20-$7.45, up from prior guidance of $7.10 to $7.35 per share for 2026, versus the $7.25 per share consensus estimate.

The retailer projects same-store sales growth of approximately 2.2% to 2.7% for the year.

Plans 4,700+ Store Projects In 2026For fiscal 2026, Dollar General reiterated plans to execute approximately 4,730 real estate projects.

These include opening about 450 new stores in the United States and about 10 new stores in Mexico, remodeling roughly 2,000 stores through Project Renovate and about 2,250 stores through Project Elevate, and relocating approximately 20 stores.

DG Stock Price Activity: Dollar General shares were down 2.62% at $107.05 at the time of publication on Tuesday, according to Benzinga Pro data.

Image via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Key Takeaways DG posted Q1 EPS of $2.00, topping estimates, while net sales rose 3.4% to $10.787B.DG's same-store sales grew 2% on higher traffic, with gross margin up 65 bps and operating margin at 5.9%.DG opened 195 stores and remodeled 1,370, and lifted FY2026 EPS view to $7.20-$7.45. Dollar General Corporation (DG - Free Report) reported first-quarter fiscal 2026 results, wherein the top line missed the Zacks Consensus Estimate, while the bottom line beat the same. Both net sales and earnings increased year over year, reflecting solid execution of its strategic initiatives, positive customer traffic trends and operating margin expansion, which more than offset the impact of severe winter weather and higher fuel costs. The company witnessed a rise across all major merchandise categories, supported by same-store sales growth and contributions from new stores.

Better-than-expected first-quarter bottom-line performance prompted management to lift its fiscal 2026 earnings view.

More on DG’s Q1 PerformanceDollar General posted quarterly earnings of $2.00 per share, which surpassed the Zacks Consensus Estimate of $1.89. The bottom line increased 12.4% from $1.78 reported in the year-ago quarter.

Net sales of $10,787 million rose 3.4% year over year. Revenues narrowly missed the Zacks Consensus Estimate of $10,822 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 2%, reflecting a 1.4% rise in customer traffic and a 0.5% 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 InsightsDollar General’s consumables category generated sales of $8,892.5 million, up 3% from the prior-year quarter. Seasonal sales increased 6% to $1,084.3 million, while home products sales rose 3.1% to $523 million. Apparel sales advanced 6.7% to $287.2 million.

Gross margin expanded 65 basis points to 31.6%, benefiting from higher inventory markups, lower shrink and reduced inventory damages, partly offset by increased markdowns and transportation costs.

SG&A expenses, as a percentage of sales, deleveraged 25 basis points to 25.7%. The increase mainly stemmed from higher depreciation and amortization expenses, utilities and property taxes, partly offset by lower incentive compensation.

Dollar General’s operating profit increased 10.8% to $638.5 million. Operating margin expanded 40 basis points to 5.9%.

DG’s Financial SnapshotDollar General ended the quarter with cash and cash equivalents of $1,353.1 million, long-term obligations of $4,563.1 million and total shareholders’ equity of $8,843.3 million.

Net cash provided by operating activities was $716.2 million in the first quarter. Capital expenditures totaled $352 million, including $203 million for improvements, upgrades, remodels and relocations of existing stores, $73 million for new-store facilities, $62 million for distribution and transportation-related projects and $12 million for information systems and technology-related projects.

DG’s Store UpdatesDuring the quarter, Dollar General opened 190 new stores in the United States and five new stores in Mexico. It remodeled 659 stores through Project Renovate and 711 stores through Project Elevate, while relocating six stores.

Management reiterated plans to execute nearly 4,730 real estate projects in fiscal 2026, including about 450 new stores in the United States and 10 new stores in Mexico, nearly 2,000 Project Renovate remodels, approximately 2,250 Project Elevate remodels and about 20 store relocations.

What to Expect From DG in Fiscal 2026?Dollar General raised its fiscal 2026 earnings per share guidance to $7.20-$7.45 from the prior view of $7.10-$7.35. The company continues to expect net sales growth of 3.7-4.2% and same-store sales growth of 2.2-2.7% for fiscal 2026. Capital expenditures are still projected in the $1.4-$1.5 billion range.

Shares of this Zacks Rank #3 (Hold) company have fallen 17.2% in the year-to-date period against the industry’s growth of 8.2%.

Don’t Miss These Solid BetsRoss Stores, Inc. (ROST - Free Report) is one of the largest off-price apparel and home fashion chains in the United States. ROST sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Ross Stores’ current fiscal-year sales and earnings implies growth of 8.2% and 15.6%, respectively, from the year-ago reported figures. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average.

Casey's General Stores, Inc. (CASY - Free Report) is one of the leading convenience store chains in the United States. CASY currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Casey's current fiscal-year sales and earnings calls for growth of 8.7% and 24.3%, respectively, from the year-ago reported figures. CASY delivered a trailing four-quarter earnings surprise of 20%, on average.

Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.

Dollar General Today

DG

Dollar General

$114.90 +0.56 (+0.49%)

As of 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$95.11▼

$158.23Dividend Yield2.05%

P/E Ratio16.25

Price Target$131.27

Dollar General’s NYSE: DG market has hurdles to overcome, but it is only a matter of time until it does. The company's decision to pause share buybacks, focus on growth, and improve the balance sheet is paying off.

Dollar General is reducing debt, invigorating growth, and is on track to sustain improvement through year’s end, and the impact is reflected in the price action. The stock price is at generational lows, trading at a deep discount, while it quietly signals a reversal. The long-term monthly chart shows a nearly complete Head & Shoulders pattern, suggesting robust stock price increases ahead.

Get Dollar General alerts:

The Head & Shoulders is a powerful pattern reflecting a market in transition. The question is whether this market will transition from a downtrend to an uptrend or remain range-bound. Assuming the worst, Dollar General’s stock price could rebound by as much as 60% from the critical support level and still be within the range. The best-case scenario is that Dollar General advances by 60%, tests resistance at the pattern’s neckline, and then continues to move higher.

The Q1 earnings release and the guidance update for fiscal 2026 gave the market exactly what it needed—proof of accelerating earnings growth—which is a reason to believe this stock will keep increasing over the long term.

Dollar General’s Mixed Results Were Strong Where It Matters MostDollar General issued a mixed Q1 report with revenue falling short of MarketBeat’s consensus estimate. The miss, however, was slim and offset by seasonal factors including weather impact and strong margins. Even so, the $10.8 billion in net revenue is up 3.5% compared to the prior year, only 20 basis points (bps) weaker than expected, driven by store count and comps. Comps increased by 2%, driven by a 1.4% increase in traffic and a 0.5% increase in average check, with strength across categories.

Margin details were the strongest. Dollar General’s inventory rationalization, improving store traffic, and operational improvement drove a 60 bps improvement in gross margin. The improvement was only partially offset by higher expenses, resulting in accelerated earnings growth relative to the top line. Critical details include the 13.3% increase in net income and 12.4% improvement in diluted earnings per share (EPS), more than 625 bps better than expected and compounded by hot guidance.

The guidance is equally mixed and bullish for the market. The company reaffirmed its full-year revenue targets despite a weak Q1, underpinned by expectations of 2.5% comp-store growth and wider margins. While the revenue target was reaffirmed, management raised its full-year earnings target by 10 cents at the midpoint, putting it about 10 cents above consensus. The likely outcome is that Dollar General continues to gain traction and outperforms as the year progresses.

Dollar General’s Balance Sheet Strengthens: Investors Gain ValueThe only downside to Dollar General’s strategy is its pause in share buybacks, implemented to preserve capital. The upside is that cash flow is improved, the cash balance is growing, debt is falling, equity is rising, and dividends are still paid. The Q1 result was a nearly 14.75% equity gain, which more than offset the slight rise in share count. The likely outcome for fiscal 2026 is that Dollar General continues to gain traction, driven by its growth reinvigoration and balance sheet strength, and eventually resumes buybacks, possibly as soon as next year. The dividend is safe, amounting to less than 40% of earnings.

Overall MarketRank™89th Percentile

Analyst RatingHold

Upside/Downside14.1% Upside

Short Interest LevelHealthy

Dividend StrengthModerate

News Sentiment0.69 Insider TradingN/A

Proj. Earnings Growth7.99%

See Full Analysis

The initial analyst response following the release was cautious, but suggests a turning point is at hand. The first update to be released was a reaffirmed rating and price target from Telsey, which pegs the stock at Market Perform with a $140 price target. The rating and target align with broader analyst sentiment, which pegs the stock as a Hold with a 41% Buy-side bias and a $140 price target, implying a 30% upside over the subsequent 12 months. Institutions are likewise bullish, having accumulated over the trailing 12 months and owning more than 90% of the stock.

Dollar General’s primary risk is high gas prices and inflation, which put pressure on its core consumer. While trade-down economics are helping growth today, rising inflation continues to erode spending power in the core demographic and threatens to undermine the outlook. Meanwhile, big-box competitors like Walmart NASDAQ: WMT continue to gain traction in the dailies and consumables categories. The primary catalysts for this stock include lower oil prices and interest rates. Either will take pressure off consumers throughout the stack. In the meantime, DG will continue leaning into store count expansion, remodels, and relocations.

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.

View The Five Stocks Here

Click the link to see MarketBeat's list of seven best retirement stocks and why they should be in your portfolio.

Get This Free Report

There's a lot of pride that comes with working hard for your money, but the ultimate goal should always be to make money in your sleep. There are many forms of passive income, but the easiest form for most people is through dividends. All it takes is purchasing shares of dividend-paying stock, regardless of the size of the purchase.

If you're looking for two stocks that can provide a lifetime of passive income, the following two options are great choices. They both approach dividends differently, but have a track record of being shareholder-friendly and prioritizing dividend payouts.

Image source: Getty Images.

1. Realty Income Realty Income (O +1.23%) isn't your typical company; it's a real estate investment trust, better known as a REIT. A REIT is a company that owns and operates income-producing real estate, ranging from office to residential to hospitality to healthcare to data centers, and more.

Realty Income owned 15,571 properties at the end of the first quarter (Q1), with most leased to grocery stores (11% of its collected rent), convenience stores (9.4%), and home improvement stores (6.4%).

Today's Change

(

1.23

%) $

0.76

Current Price

$

62.67

The company's business model is unique (and lucrative): It buys the real estate, rents it out to companies, and those tenants are responsible for paying the property taxes, insurance, and general maintenance. This contrasts with most other rental cases, where the landlord would be responsible for them.

Who Realty Income leases to matters a lot. Its tenants aren't seed-round start-ups; they're typically businesses in industries that thrive regardless of economic conditions, providing Realty Income with reliable rent income and keeping its vacancy rate low. Its top three clients are Dollar General, 7-Eleven, and Walgreens.

Because REITs are structured, Realty Income is required to return 90% of its taxable income to its shareholders. It has a monthly dividend, which works well for those who want their passive income more frequently. Depending on how much you eventually invest in it, its payouts can work somewhat like paychecks.

O Dividend Yield data by YCharts

Realty Income routinely has a high dividend yield, but its consistent increases make it a better long-term investment. In March, Realty Income announced its 114th consecutive quarterly dividend increase, and I expect this streak to continue for the long haul.

2. Procter & Gamble Procter & Gamble (PG +0.86%) (P&G) is one of the more surefire dividend stocks on the market. It's a Dividend King (a company with at least 50 consecutive years of dividend increases), having increased its dividend for 70 straight years -- the fifth-longest streak on the market.

The key to P&G's sustained success is selling products that sell regardless of economic conditions. It owns household-name brands such as Tide, Pampers, Crest, Bounty, Tampax, Gillette, Old Spice, and dozens of others. Regardless of whether the economy is flourishing or in a recession, people have to brush their teeth, wash their bodies, clean their clothes, clean their homes, and keep up with feminine care.

Today's Change

(

0.86

%) $

1.27

Current Price

$

149.61

At its size, P&G won't be a company that consistently grows revenue by double-digit percentages, but it'll be a reliable cash cow. In its most recent quarter (ended March 31), P&G generated $21.2 billion in sales, up 7% year over year. Its operating cash flow (cash from its core operations) was $4 billion, more than enough to cover the $2.5 billion in dividends it paid out in the quarter.

PG Revenue (Quarterly YoY Growth) data by YCharts

You don't invest in P&G in hopes of "Magnificent Seven" stock-like returns; you do it because you know you never have to second-guess its attractive dividend. Its current dividend yield is nearly 3%, a bit above its 2.5% average over the past five years. It's a two-for-one benefit: an above-average dividend yield and an all-but-guaranteed annual increase.

Part of having passive income is not having to think too much, and P&G's stock (and dividend) lets you avoid just that.

 | 

Dollar General’s core customers are cutting back on food purchases and other household expenses due to rising gas prices and reductions in SNAP benefit payments, CEO Todd Vasos said Tuesday (June 2).

“This pressure has been more pronounced on customers in rural communities as they work to minimize trip distance and make trade-offs in their search for everyday affordability and value,” Vasos said during the company’s first quarter earnings call.

Dollar General is meeting the needs of these and other customers with a combination of value and convenience, Vasos said. He highlighted the company’s 21,000-store footprint, growing delivery presence, pricing position that is within three or four percentage points of mass retailers, and selection of more than 2,000 items at or below the $1 price point.

During the first quarter, Dollar General saw year-over-year increases of 3.4% in net sales, 2.0% in same-store sales, 1.4% in customer traffic and 0.5% in average transaction amount. Its same-store sales included growth in each of the company’s four categories: consumables, seasonal, apparel and home products, according to a Tuesday earnings release.

Vasos said during the call that the company also saw growth in customer penetration across all income cohorts, including low-, middle- and high-income segments, as an increasing share of consumers seek value.

“Notably, across these cohorts, the largest increase in customer count came from the highest-income segment, which earns more than $100,000 annually, contributing to a significant increase in trade-in customer households during the quarter,” Vasos said.

Advertisement: Scroll to Continue

“We know that value and convenience are always important to our customers, but even more so right now,” Vasos added.

The Federal Reserve Bank of New York published research Wednesday (May 27) that said lower-income Americans are facing high levels of economic insecurity and financial strain.

“We find a remarkable increase in food insecurity, particularly among lower-educated and lower-income households and households with young children,” New York Fed researchers wrote.

The latest Consumer Price Index report from the Bureau of Labor Statistics, released May 12, showed inflation rising 3.8% year over year in April, while prices increased 0.6% month over month, marking the strongest monthly inflation gains since October 2022.

In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Tyler Crowe, Matt Frankel, and Lou Whiteman discuss:

Dollar General’s earnings.Has Dollar General turned the corner?Investing in turnaround stocks: What to look for?Citron Research’s Andrew Left found guilty of securities fraud.The value of short-selling research.The “ickiness” of the short-seller business model.Listener question: Are crowdfunded real estate funds worth it? What to look for?To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.

A full transcript is below.

This podcast was recorded on June 2, 2026.

Tyler Crowe: We're talking short sellers and turnarounds today on Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing. I'm your host, Tyler Crowe, and today I'm joined by longtime Fool contributors, Lou Whiteman and Matt Frankel. We're going to be getting into short sellers, specifically short-selling research firms, after the court decision that came down on Citron Research earlier yesterday. We're also going to look at investor questions related to real estate on the private side, not necessarily reads that we normally talk about on a publicly traded entity show.

But first, we're going to start with Dollar General. I wanted to bring this one up specifically because it's been a turnaround story for several years. It's not the most headline-grabbing company. But during the 2010s, Dollar General was one of the best-performing stocks. It handily beat the S&P 500. Companies that we think of now like Mag 7 companies like Microsoft and Alphabet, Dollar General was beating it. That came to a crashing halt right around 2022 as trouble started to pile up for various reasons, and the company's been trying to get its act together for a while now. This morning, it just reported earnings, and the numbers said they beat expectations and raised guidance, and yet the stock is down about almost 3% as we're taping this. Matt, was this a good result, or was it just beating bad expectations for what is now a downtrodden stock?

Matt Frankel: Well, Dollar General, you're right. They beat expectations on earnings. On revenue, they missed expectations a little bit. It wasn't all good. Same-store sales, for example, grew 2% year over year. That's less than the rate of inflation, so on a real basis, they actually lost same-store sales. On the other hand, their margins look good. Gross margin rose 65 basis points, net income increased by 13%, and as you mentioned, earnings beat expectations. It missed slightly on the top line, beat on the bottom. I'm not shocked that the stock is under pressure. The company is making good progress on its plan to renovate and improve its existing stores, which is a big cornerstone of their turnaround plan. They did 1,400 of them in the first quarter alone, they're aiming for a little over 4,200 for the entire year. They continue to open stores when they see opportunities. Almost 200 new stores were opened during the first quarter. They maintained their revenue guidance for the full year, but they raised their earnings guidance. I'd say things are going OK. They're not going great, but they're going OK.

Lou Whiteman: Maybe the market debate is in the word good in good progress. Because, yes, there's definitely making progress here. This is a promising start to what figures to be a long-term turnaround. They were beaten, rightfully so, I may add, and the market right now, I don't think they want to celebrate just one quarter of a turnaround. They have an ambitious plan. There's nothing in this quarter to suggest that there's anything wrong with the plan, but competition is intense here. In retail, there is no guaranteed winner. You are not entitled to continue to exist, so there is real downside risk. Turn around, still early days. I think you give credit where credit is due, but I think the market's right to be cautious here and not to just be cheering just because of one quarter's results.

Tyler Crowe: I feel like the three of us have been in the same experience here for a while, where I've been to a few value investing conferences over the past few years, and I think I've heard so many Dollar General pitches at these value investing conferences. I feel like I could set my watch to it and almost do the whole pitch by memory now. It all had struck the exact same chords. It was former CEO Todd Vasos is now back in charge again after, that 2020, 2010 run-up, and he's the one in charge again. The stuff that's a problem, it is fixable. If you focus on the current store fixing, like you were talking about, Matt, in the most recent numbers, instead of really trying to blow out your store account, which was part of the growth’s narrative and why it was so successful, all these things happened, and boom, we're back at two times price-to-sales ratio, eight times book value. Some of these things are coming true. Sales continue to grow, margins are improving. But at the same time, that valuation standpoint, it hasn't come anywhere close to it. We're still less than one times sales. I think book value is something like 2.5 times book. The valuations way different.

This is the challenge, in my opinion, of investing in turnarounds, and I wanted to use Dollar General as a good example here, but we could have done Advance Auto Parts or the 15 other long-term turnarounds that sometimes have not quite gotten off the ground. It's not just a bet on the fundamentals of the business returning. It's also the narrative that drives that valuation of what people think about it. I know I certainly have touched the hot stove a couple of times. I don't even know if I can mention some of them because they're so small these days that I think we can move the stock, so I don't even want to mention them because they're in such bad shape. But with that in mind, one, if you want to share any turnaround bets that you made that didn't go awry or did, and what advice would you give to investors when it comes to actually investing in these turnaround ideas or fallen angels like Dollar General?

Matt Frankel: Of course, every turnaround story is different. But there are some common themes. For me, leadership is the most important variable. I typically want a CEO that's done it before, not that's run the company before, but has executed a turnaround before. Unity Software, you asked for an example, is one that I can think of off the top of my head. Their current CEO Matt Bromberg, formerly led the turnaround at Zynga, the gaming platform, so he's done it before. The balance sheet needs more than enough money to execute on the turnaround. You don't want to be raising capital while the company's down. I'll almost never invest in a turnaround from the start. I want at least some evidence, a few quarters of numbers moving in the right direction that show that it's working. I want to see things like same-store sales growth and after inflation, like in Dollar General's case, margin trends, customer accounts growing, things like that. That's what I look for.

Lou Whiteman: First off, I think it's so important to look at the competition just as a society. It’s definitely true here is that, look, a company that has fallen from grace or lost the customer’s eye, if you’re a consumer-facing company, you can execute very well, and it can be hard to get back on the radar, get back in good graces with the customer. I think that is a huge wildcard that you have to look out for here. But generally speaking, Tyler, I think you hit on it. Narrative is so important. We are surrounded by data. The market knows everything that's going on at any given time these days. The hard part is knowing when the market will care about the data. A lot of sharp moves we see, and this is a Dollar Tree thing. This is anywhere, but a lot of sharp moves, it's not because there's some new surprise. It's just we suddenly started caring about something we already knew about. Look at the SaaS apocalypse. We've known what AI wanted to do forever, but suddenly, this was cutting 50% off the price of the stocks because suddenly we actually cared about it. It was in our consciousness. In a turnaround story, the only antidote to narrative is patience. If the turnaround is working, if the data looks good, the market will catch on eventually. But that eventually can take a long time. It's really hard to know when, so patients can be needed.

Tyler Crowe: I find it funny because you said Dollar Tree instead of Dollar General, but I actually feel like this whole segment could have been done with Dollar Tree instead of Dollar General. We might have come to the same conclusions. But before I go, anybody want to touch the hot stove, like a turnaround that worked for you in your portfolio, one that flamed out, didn't quite work out?

Lou Whiteman: I'll do one of each and that bottom at the same time, which is, again, to show you that they don't all work out. I bought Garrett Motion and Simply Good Foods at the same time. One of them, I think, is a 3X now, and one of them is down 60%. I like both equally, going in.

Matt Frankel: Tyler, you're betting on Transocean's turnaround with me, so I'll just leave it at that.

Tyler Crowe: Coming up after the break, we're going to get into the muddy waters of short-selling.

ADVERTISEMENT: It's not just that companies become too big to fail, and we bail them out, although that's happening. It's not just they become too big to jail, but they become too big to care. These companies, they eliminated the competition. They and their advisors, the economists who said monopolies are good and efficient, they're today just absolved of all responsibility. Shopping really hard doesn't solve monopolies. We warned them at the time. They did it anyway. The Ishigogenic policy environment is what created this. Do you hear why the Internet keeps getting worse? Check out episode 1280 of the Jordan Harbinger show.

Tyler Crowe: Let's talk about short-selling and short-seller research firms in general. This isn't a topic we explore much here because I'm using the Royal "we" of The Motley Fool, not necessarily the three of us. We don't normally short stocks. Yes, me, I sometimes use options like put options for income or buying a stock at a set price instead of doing price limits. But I think I can speak for the three of us when we say I don't think any of us go out and say, the company's no good. I'm short of stock or short stocks in our portfolio. Matt, Lou, do either of you guys do that?

Matt Frankel: I don't want to say that I've never shorted a stock. I'm sure back in my early days, before I knew how to invest, I did. But I can't really remember the last time. On occasion, I'll set up option spreads or something like that that could profit if a stock I consider frothy were to go down. But even that's rare.

Lou Whiteman: I stopped a long time ago. It's just too much work.

Tyler Crowe: The work is key here. We’re talking about this one specifically because yesterday, Andrew Left, of the short-selling research firm Citron Research, was found guilty of securities fraud. It was actually 13 of 17 counts, and I think one of them carries a maximum prison sentence of 25 years. I don't know if he's going to get 25 years, but there is some real penalties going on here. Basically, the thesis on the court case was he was using his followership on social media and elsewhere to disseminate his research and manipulate stock prices to profit from it. Now, I wanted to bring this to the table because I have some real conflicting thoughts about this as an investor, and also what we do in financial media. For all the flak that most investors give to short sellers for a myriad of reasons, some good, maybe some not, I think there's some real value to short sellers, and short-seller reports, like the ones that Citron Research have done in the past. Do either of you agree with me here, or am I standing on an island?

Lou Whiteman: Absolutely. No, I'm 100% pro short sellers. I will say they vary in quality, just like longs, that's not exclusive to the short. I don't know, and we'll get into it, I don't know if I can be pro-Andrew Left here, but definitely short sellers need to exist.

Matt Frankel: I would agree with that. There's a solid case to be made that short sellers are a vital part of the stock market. There’s a lot of academic research out there that shows that short sellers improve price discovery, reduce the average duration of miss pricing, i.e, bubbles, and cause less impactful crashes than otherwise would happen. Short sellers have legitimately been the first to identify fraud many times. Think of Nikola, for example.

Tyler Crowe: To that point, too. Lou, like you were saying, not necessarily the biggest fans of Andrew Left, but Citron Research were some of the first ones to point out with all the accounting shenanigans that were going on at Valiant Pharmaceuticals. I think it was back in 2015. I think within days of that Citron Research report, Valiant was making drastic changes to its business, talking about dissociating itself from some of the pharmacies that it was working with because there was accusations that they were using those pharmacies for overcharging. It was a pretty clear-cut fraud case that Citron brought to everyone's attention here. It was good and important work. To your point, Matt Nikola was a great one. While this technically wasn't a short report, John Carreyrou's work on Theranos was in that same spirit. I think, had Theranos gone public without some of that work, I'm sure they would have made it even worse. We the market, we sometimes need people on the lookout for the bad stuff for the Valiants, for the Nikolas and stuff like that, or otherwise, they can perpetuate and get even worse. Now, with all of that said, and this is where it starts to get conflicting, there is something that's definitely icky about the business model for many short sellers. The verdict during this Citron Research court decision is where some of that icky business practices started to come to light, and I think that's why we're like don't really know if I want to stand up for Andrew Left here.

Matt Frankel: The big takeaway, it's not that publishing short research is inherently bad. It's not. But misleading investors is, and it's not just Citron that does it. Muddy waters, which you mentioned earlier in the episode, at least they say this, but they include a line in every short report that says, Upon the publication of each report, we intend to begin covering a substantial majority of our short positions. They go on to say, “You agree and understand that by the time you read a report on this website, we may be covering or have already covered, i.e., bought back our short position.” This is where I have a problem. They're aiming to profit at publication and don't plan to stick around to see if their short thesis was actually right. Always read short reports on stocks you own. Don't get me wrong. It's always worth listening to the bear case to every stock you own. Even reports where the seller just aims to make a quick buck, like those, they often contain real concerns that are worth investigating. Now, Citron's general process, and this came out in the trial, was to identify a target, quickly establish a short position in it, coordinate some timing, and publish an attention-grabbing claim, either a tweet or an article, watch retail investors panic and react, sending the stock lower, and then cover into the short without disclosing it in most cases.

Lou Whiteman: One real big objection to what Matt said. I don't think that there is anyone who honestly believes that every person that goes on CNBC, Bloomberg, or something, and says, I think such and such is great is committing to a timetable. If anything, Matt, like you say, at least the shorts admit this, there is nothing stopping anyone from saying on a tweet, on television or anything, I think Stock A is going to the moon, see it go up 5% and sell it right away. There are, I should say that for some of us, like some companies choose to put restrictions on what people can say and then act on. Motley Fool does that. I'm all for it because I agree that's not ethical, but to say that this is just some short thing, that they say something about a company and then sell off, that happens all of the time, and it feels like crocodile tears to get too caught up on it, just shorts do it. What I have a problem with, and again, I want to be careful because, I guess, the jury has ruled, but it is still allegedly, allegedly from the prosecution, is the idea that Left was basically marketing his reputation to sympathetic hedge funds and coordinating takedowns. That's where you sort of cross the line. There's email quotes about, all I have to do is go on, say something, and it'll be like taking candy from a baby. I do think that there should be some standard of conviction to your words that you should actually be going in with a thesis. But look, if my thesis is that this company is overvalued, and I think it's going to go down from here. I say that loudly enough, and it goes down. Whether it takes 20 minutes or two years, why shouldn't I cover there? The act that they do that just because they're on the downside, betting on things going down seems just as fair to me as betting things go up. I just don't think you should be conspiring with other people to manipulate stock prices, which is what was implied with Left here.

Tyler Crowe: I'm going to do a shameless plug here for the Motley Fool. You know what? It's our podcast. I like to do that sometimes. We get some stocks right. We get some stocks wrong. But one of the things that you were mentioning, we do have a pretty robust disclosure and no trade policy. If we know that a stock is going to be recommended weeks in advance, we're not allowed to trade it. If we talk about or write about any of the stocks that you hear us talking about on this podcast, we can't trade them for multiple days, and that's part of the process. I think at least for me, and I'm sure that you two agree on this to a certain degree, it's one of the reasons I've enjoyed working for The Motley Fool for a long time is because we get some things right. We get some things wrong. We can't say that we're perfect, but I think there's a level of transparency and disclosure when it comes to things like this that separates us to a certain degree from the Citron Research, publishing something and then immediately trading on it afterwards.

Lou Whiteman: It should be said, Tyler.

Tyler Crowe: Go ahead.

Lou Whiteman: That's more the exception than it is the rule, which is why all of the hand-waving about shorts, this happens unfortunately a lot on both sides on Wall Street. If we really care about it, we should really start looking at every tweet pumping a stock as well.

Tyler Crowe: Well, there's only so many Wall Street ethics episodes we can do here on the podcast. But every once in a while, we're going to do our standing on our soapboxes, and this is probably one of them. Coming up after the break, we'll do listener questions. That's. Hey, everyone, quick reminder, if you want to get your questions in, we love answering them. Just send them over to [email protected]. That's [email protected]. The three requests we always ask is number one, keep it Foolish. Two, keep it short enough if I can read on air, and three, we can't give personalized advice, so always ask generic questions. What would an investor do, or what do you think about a stock? We can't necessarily tell you what you should do with your portfolio. We don't want to get in trouble with the SEC, like Andrew Left did.

With that in mind, here is the question from Matt. Hi, Motley Fool team. I have questions about whether syndicated crowd-funded private equity and real estate should have a place in my portfolio. Basically, the rest of it goes, Could you share your thoughts on how to safely invest in and evaluate these funds? What specific red flags or metrics should I look out for as I compare for them? Thanks for all the great content. Lou, I want to start with you, private equity, real estate. This was a really popular thing. I think 2019, 2020, where a lot of the regulations change where instead of having to be what was called an accredited investor, where you had to have enough either money or income to invest at a certain level, they brought down those thresholds and made, what they said was democratizing private equity. It's had some mixed results, and I think that's what we're getting at here. When you're looking at this particular part of the market, what are you looking for?

Lou Whiteman: I get the appeal, and you don't have to go far to find the appeal because they market the heck out of it. Diversification, there's some tax benefits, maybe, depending on what you're doing here. But these are not going to be part of my portfolio, and I'll tell you real simple why. One thing, you're signing over a lot of control to whoever's managing this. Do they have a good track record? Have they navigated downturns? If it's real estate, are the underwriting assumptions realistic? There's just a lot that you were putting in someone's hands, so you better know them. But the big thing is, this all matters because you're typically locked in, and your capital is locked there for years on end. You are in, you were part of this, heck or highwater however it goes. If you do want to do this, spend a lot of time on due diligence. The reason this is for accredited or supposedly sophisticated investors is that there aren't a lot of safety nets here. There's a lot of homework that is asked of you. Do that homework. Spend the time breaking down the manager. Look at the plan. Look closely at the fees because a lot of these are designed to get the manager rich, not you. Shop around, just do your homework.

Tyler Crowe: Matt, I'll let you do the final words here. But in a previous life for me at Motley Fool, I did some work on some scoring and rating of crowdfunded real estate funds. In my assessment, the better ones were, at best, you get a percentage point or slightly more on a net basis after fees than publicly traded rates, and you had to lock up your capital in these illiquid securities. At worst, they were launderers of fees that basically they could pitch massive yields and huge growth to the investors, but they just bought and sold a bunch of stuff within the portfolio to rack up transaction costs and management fees, and to your point, Lou, just enriching the management. That was the worst examples of it. In some ways, even just buying questionable real estate just for the sake of buying stuff, again, for the fees. I greatly appreciated the concept of bringing a lot of these funds, both on the accredited and unaccredited version. It was trying to make assets that were typically reserved for higher-net-worth individuals more accessible to all of us. I can understand the appeal, and I do sympathize with that. But the regulations on this part has just been like the Wild West, and really, you're throwing individual investors to the wolves here. The reason that this has been reserved for the rich is because they could hire an army of analysts and lawyers to look over this stuff, and, us weekend hobbyists don't really have the assets to really do that.

Matt Frankel: I'd stay away, and this comes from someone who invested in several of these private crowdfunded real estate deals over the past five or six years. The numbers are not in your favor. This was an analysis, over 50% of deals listed on the CrowdStreet platform, for example, failed to meet their targets. More than 10% went to zero. Several platforms have failed completely in the past five years, and total documented investor losses across the sector were more than $400 million across just the major platforms since 2020. Now, I'm not saying real estate crowdfunding is a scam, it's not. But the marketing really oversells the expected returns in almost all cases.

Tyler Crowe: Apologies to Matt, looking for advice on this, but I think the best advice we can give for a lot of these things is maybe it's best to stay away and stick to the publicly traded stuff. Like I said, maybe it's one or two percentage points lower for publicly traded bricks, but you get a lot of the advantages of liquidity and transparency.

As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for our guest, so don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool editorial standards, and it's not approved by advertisers. Advertisements for sponsored content are provided for informational purposes only. To see our full advertising and disclosure, please check out our shows. Thanks for producer Dan Boyd, and the rest of The Motley Fool team. For Lou, Matt, and myself, thanks for listening, and we'll chat again soon.

Key Takeaways DG Q1 FY2026 same-store sales rose 2%, driven by 1.4% traffic growth and a 0.5% higher ticket.DG saw all four categories post positive comps for a fifth straight quarter, led by non-consumables.DG said business rebounded after the February winter weather. Dollar General Corporation’s (DG - Free Report) first-quarter fiscal 2026 same-store sales growth suggests that the company has multiple drivers supporting its performance for the rest of the year. Same-store sales increased 2% in the quarter, driven by 1.4% growth in customer traffic and a 0.5% rise in the average transaction amount. Traffic-led comps generally indicate that customers are visiting more often, rather than growth being driven only by higher prices or larger baskets.

Dollar General said all four merchandising categories delivered positive comparable sales for the fifth straight quarter, with non-consumables again outpacing consumables. That balance is important because it shows the company is not relying solely on essential categories to drive comps.

Management also pointed to consistency within the quarter. All three periods were positive, with March helped by the Easter shift. The company said the business recovered after severe winter weather hurt the first two weeks of the quarter in February, with the remaining 11 weeks running near the upper end of its range. Trends also continued as May began.

For fiscal 2026, Dollar General continues to expect same-store sales growth of 2.2% to 2.7%. After a 2% first-quarter comp despite weather disruption, the latest update suggests that the company’s value and convenience proposition is still drawing repeat visits and providing a firmer base for same-store sales growth.

How Dollar General Compares With Walmart and TargetWalmart Inc. (WMT - Free Report) posted U.S. comparable sales growth of 4.1% in the first quarter of fiscal 2027, driven by higher customer transactions, increased unit volumes and strong e-commerce performance. Walmart continued to gain market share across income groups while benefiting from growth in advertising, marketplace sales and Walmart+ membership revenues. Walmart’s results reflected steady demand for both grocery and general merchandise offerings.

Meanwhile, Target Corporation (TGT - Free Report) delivered comparable sales growth of 5.6%, supported by a 4.4% increase in traffic and strength across both stores and digital channels. Target reported sales growth in all six core merchandise categories, with broad-based demand across guest demographics. Target also highlighted momentum in beauty, food and wellness categories. As Target executes its merchandising and store experience initiatives, the retailer remains focused on driving sustainable long-term growth.

What the Latest Metrics Say About Dollar GeneralDollar General has seen its shares tumble 26.8% over the past three months compared with the industry’s decline of 1.3%. 

Image Source: Zacks Investment Research

From a valuation standpoint, Dollar General's forward 12-month price-to-earnings ratio stands at 14.19, lower than the industry’s ratio of 31.30. However, it is trading below its 12-month median level of 17.52.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Dollar General’s current financial-year sales and earnings per share implies year-over-year growth of 3.9% and 6.7%, respectively. For the next fiscal year, the consensus estimate indicates a 3.9% rise in sales and 8.7% growth in earnings.
 

Image Source: Zacks Investment Research

Dollar General currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Given the stock's 30% pullback since late February, it would be easy to presume Dollar General's (DG +0.40%) core customers are struggling under the weight of inflation. Indeed, the Bureau of Labor Statistics says the annualized pace of consumer prices grew to 4.2% in May, largely thanks to the soaring cost of food and gasoline.

Yet, the discount retailer is doing surprisingly well, reporting respectable same-store sales growth of 2% for the three months ending in early May and companywide revenue growth of 3.4% year over year. Earnings grew even more thanks to curbed inventory costs, and the company's calling for even faster top- and bottom-line growth than for the full fiscal year.

What gives?

Image source: Getty Images.

Not yesteryear's Dollar General Part of the answer lies in the fact that the company's full-year guidance actually suggests slowing sales growth ahead. Perhaps worse, investors may fear inflation hasn't yet actually affected Dollar General's results but could do so soon.

And these aren't unreasonable concerns. While middle-income consumers are increasingly shopping with Walmart to make their money go farther, there's been no real trade-down option for Dollar General's core demographic.

This is not the Dollar General of 2021 and 2022, though, when steep, unexpected inflation first surfaced that Dollar General wasn't ready for. It's ready now.

Take where most of the retailer's first-quarter sales growth came from as evidence. As it turns out, households earning at least $100,000 per year are becoming more regular patrons, accounting for the biggest piece of last quarter's 1.4% increase in total foot traffic. Gross profits also improved more than 60 basis points in Q1, suggesting the company is enjoying a combination of greater pricing power and lower merchandise costs. During the conference call for first-quarter earnings, Dollar General CEO Todd Vasos even touted the draw of a selection of over 2,000 items priced at $1 or less.

This is largely what was missing as Dollar General emerged from the COVID-19 pandemic in 2022.

Today's Change

(

0.40

%) $

0.46

Current Price

$

114.80

To buy or not to buy? It's not necessarily a slam dunk you absolutely must immediately buy. Even if the retailer has quietly reinvented itself, clearly the market doesn't see it or believe it yet. More investors need to get on board if the stock's going to start recovering anytime soon.

For what it's worth, though, the analyst community seems optimistic, suggesting this stock's worth $130.61 per share versus the ticker's current price of less than $109.

It's also worth acknowledging that Dollar General's seemingly tepid guidance may represent the worst-case scenario, setting the stage for earnings and revenue beats in the year ahead. The company's been racking those up since its regrouping effort was finalized early last year.

Bottom line? It's still not a great core holding, simply because its net growth potential remains modest no matter how well it performs -- never mind the lack of certainty that last quarter's results are an indication of how the rest of the year will turn out. If you've got room in your portfolio for a value name that's underpriced because it's currently underestimated, though, there's a case to be made for stepping into this one.

MORRISVILLE, N.C.--(BUSINESS WIRE)--Peter Gross appointed to DG Matrix Executive Advisory Board.