American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Could Dollar General stock price rebound after earnings?

by admin December 1, 2024
December 1, 2024
Could Dollar General stock price rebound after earnings?

Dollar General stock price has suffered a major implosion in the past two years, making it one of the worst-performing companies in Wall Street. GD has crashed by almost 70% from its highest time in 2022, lowering its market cap from over $62 billion to about $17 billion.

Rotation to Walmart

Dollar General is not the only retail stock that has imploded in the past two years. Dollar Tree has also crashed by 59% in the same period, while Five Below has dropped by 62%. 

A likely reason for this is that many consumers have rotated from bargain stores to Walmart, a company whose market cap is on a path to $1 trillion. Walmart is often seen as a better alternative to dollar stores because it offers a wider variety of products. It also has the Walmart+ service that has accumulated over 30 million customers.

Dollar General is also facing substantial competition from other retail companies like Amazon, which has over 200 million Plus subscribers. These users prefer buying on Amazon and Walmart because their subscriptions guarantee them free delivery.

Dollar General’s top-line growth has been fairly steady, signaling that the company is seeing strong demand from customers. Its annual revenue has jumped from $27.7 billion in 2019 to over $38 billion in the last financial year.

The challenge, however, has been on the bottom line, as the net profit has dropped from $1.7 billion to $1.45 billion in the same period. This trend happened as the cost of labor and overall inflation jumped in the United States. 

Read more: Why are Dollar Tree and Dollar General stocks falling apart?

Dollar General earnings ahead

The next important catalyst for the DG stock price will be its upcoming earnings, which will provide more information about its business. 

The most recent results showed that Dollar General’s net sales rose by 4.2% in the last quarter to $10.2 billion. Same-store sales rose by 0.5% during the quarter. 

However, the profitability challenges that have existed in the past few quarters remained. Its operating profit dropped by 20.6% to $550 million, while the diluted earnings per share fell to $1.70.

The company attributed its overall weakness to weak consumer spending and elevated costs. However, it has also made progress, such as reducing its inventories to about $7 billion from $7.5 billion a year earlier.

Analysts believe that Dollar General’s revenue rose by 4.5% in the last quarter to $10.14 billion. The higher estimate of its revenue was $10.14 billion, while the lower side was $10.05 billion. 

The annual revenue estimate for the year is expected to be $40.5 billion, a 4.7% from the last financial year. It is then expected to hit $42.4 billion in 2026. These estimates are evidence that the company is doing modestly well in terms of demand.

The ongoing challenges, while bad, could be a positive catalyst for the company as it allows it to address its cost structure. 

Dollar General’s valuation has also become reasonable in anticipation of its recovery. It has a price-to-earnings ratio of 13.28, lower than the consumer staples median of 17.

Read more: Dollar General’s earnings reveal vulnerability among low-income consumers

Dollar General stock price analysis

DG chart by TradingView

The weekly chart shows that the DG share price has been in a strong bearish trend in the past few years. It recently crashed below the key support at $99.95, its lowest point in October last year. 

Dollar General stock has crashed below the 50-week and 200-week Exponential Moving Averages (EMA). The Relative Strength Index (RSI) and the MACD indicators have continued falling.

Therefore, the stock could bounce back, and possibly retest the key resistance at $99.95. That implies a 28% jump, and could happen when it publishes its earnings this week.

The post Could Dollar General stock price rebound after earnings? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Cheap DocuSign stock could surge 125% to $175
next post
Gautam Adani responds to US bribery allegations: ‘Negativity spreads faster than facts’

Related Posts

Renault stock price: insulated from trade war, but...

April 11, 2025

Long US30: bullish breakout on dow jones industrial...

November 7, 2024

Oracle stock at record high: time to take...

July 4, 2025

Boeing CEO, other executives stepping down amid safety...

March 27, 2024

Long BRC: Brady Corp Q1 FY2025 Earnings Beat...

November 21, 2024

European markets open mixed; UK May inflation at...

June 18, 2025

Eli Lilly pulls ahead of Novo in obesity...

May 17, 2025

Long AER: bullish breakout from W formation signals...

December 17, 2024

Berkshire Hathaway’s secret stock bet nears possible reveal

August 14, 2025

Analyst sees HDFC Bank shares racing 18%: here’s...

December 23, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,763)
    • Investing (2,783)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved