Dollar General Corporation
) shares reached a new 52-week high of $61.32 yesterday. However,
the stock of this discount retailer closed at $60.74, reflecting
a year-to-date return of roughly 41.5%. The shares moved north
primarily backed by momentum from the company's recently reported
better-than-expected third-quarter fiscal 2013 results and an
impressive full-year outlook.
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Dollar General currently trades at a forward P/E of 18.9x, in
line with the peer group average. The last traded price is 3.8%
below the Zacks Consensus average analyst price target of $63.14.
Average volume of shares traded over the last 3 months stands at
Investors are optimistic about this stock as its third-quarter
earnings per share of 72 cents beat the Zacks Consensus Estimate
and increased 14.3% year over year. Dollar General reported net
sales of $4,381.8 million, up 10.5% on a year-over-year basis
driven by robust consumable sales.
Sales of the consumables category continue to improve, primarily
buoyed by the sturdy sales of tobacco products, perishables,
candy and snacks. Comps also remained strong across seasonal and
home products, backed by higher traffic.
Looking ahead, Dollar General expects to maintain its ongoing
growth momentum for fiscal 2013. This is evident from its fiscal
2013 earnings projection in the range of $3.18 to $3.22 per
share, indicating an increase in the lower end of the previously
provided guidance of $3.15 to $3.22. The Zacks Consensus Earnings
Estimate for fiscal 2013 currently stands at $3.21, which is
towards the higher end of the company's forecast. Moreover, it
expects sales to escalate by 10%-10.5% year on year.
This Tennessee-based retailer, operating through nearly 11,061
stores, currently holds a Zacks Rank #3 (Hold).
Apart from Dolar General, other retail stocks such as
Newell Rubbermaid Inc.
Copa Holdings SA
) achieved new 52-week highs of $32.25, $155.05 and $157.00,
respectively, on Dec 10, 2013.