Dollar General Hits New High - Analyst Blog


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Shares of Dollar General Corporation ( DG ) 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 results.

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. ( BBY ), Lions Gate Entertainment Corp. ( LGF ) and Michael Kors Holdings Limited ( KORS ) achieved new 52-week highs of $37.98, $36.29 and $75.92, respectively, yesterday.

BEST BUY (BBY): Free Stock Analysis Report

DOLLAR GENERAL (DG): Free Stock Analysis Report

MICHAEL KORS (KORS): Free Stock Analysis Report

LIONS GATE ETMT (LGF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: BBY , DG , KORS , LGF

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