Dollar General $DG stock confirmed a break above its 50 day moving average on April 24, 2023. The stock is in a technical weak downtrend but bullish momentum appears to be increasing.
Dollar General is a retail chain that operates variety stores across the United States. They offer a wide range of products at low prices, including household essentials, groceries, health and beauty aids, clothing, toys, and seasonal items. The company is known for its commitment to providing affordable products to customers in rural and low-income areas.
As the economy continues to weaken with a potential recession looming, the strong nature of Dollar General’s business should outperform other retailers. The strength is reflected in its latest earnings, with double-digit growth on both the top and bottom lines.
Argus upgrades Dollar General to Buy
On April 21, 2023, Argus upgraded Dollar General to Buy from Hold with a $250 price target. Dollar General is a rare retailer that is growing in square footage and seeing positive comparable salesThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th..., Argus says. The stock is down 17% from its 52-week high, but this major dollar store has increased its dividend at a CAGR of 15% over the past 5 years and the stock now looks relatively attractive over the next 12 months.
Guggenheim reiterated a Buy rating on Dollar General
On April 24, 2023, Guggenheim reiterated a Buy rating on Dollar General (DG) and price target of $260. Analyst John Heinbockel likes the potential of a mini-DG Market format which he says is still a critical competitive advantage for the retailer. Heinbockel said recent Texas store visits not only reinforced a positive view on DG’s consistent store-level execution, but highlighted the attractiveness of the mini-market concept.
