Dollar General Corporation
) surged to attain a new 52-week high of $57.42 on Sep 4, 2013,
before closing at $56.39, gaining momentum from the phenomenal
second-quarter fiscal 2013 results. Year-to-date, this Zacks Rank
#2 (Buy) stock has generated a return of roughly 31.4%.
Based on the current price, this discount retailer is 3.7%
above the Zacks Consensus average analyst price target of $58.54.
The company currently trades at a forward P/E of 17.61x, a slight
premium to the peer group average of 17.59x. Additionally, the
company's long-term estimated EPS growth rate is 15.8%.
The stock jumped on the better-than-expected results, wherein
earnings of 77 cents a share surpassed the Zacks Consensus
Estimate of 74 cents, and surged 11.6% from the year-ago quarter.
Consumables category was the driving factor behind the sturdy
Net sales increased 11.3% to $4,394.7 million and also came
ahead of the Zacks Consensus Estimate of $4,353 million. Sale of
consumables category continue to improve, primarily buoyed by the
introduction of tobacco products and robust sales of perishables
and candy and snacks. Going ahead, the company plans to open 650
new stores, up from 635 forecasted previously.
Dollar General continues to project fiscal 2013 earnings in
the range of $3.15 to $3.22 per share. Total sales are expected
to rise by 10% to 11% year over year, while same-store sales are
expected to increase by 4% to 5%.
Apart from Dollar General, other stocks such as
Best Buy Co., Inc.
Lions Gate Entertainment Corp.
Michael Kors Holdings Limited
) achieved new 52-week highs of $37.98, $36.29 and $75.92,
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