Dollar General Corporation
), a discount retailer, to beat expectations when it reports
second-quarter fiscal 2013 results on Sep 4, 2013.
Why a Likely Positive Surprise?
Our proven model shows that Dollar General is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
Dollar General currently has an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +1.35%. This is because the Most Accurate Estimate stands at
75 cents, while the Zacks Consensus Estimate is pegged at 74
Zacks Rank #2 (Buy):
Note that stocks with a Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings estimates. The
sell-rated stocks (Zacks Rank #4 and #5) should never be
considered going into an earnings announcement.
The combination of Dollar General's Zacks Rank #2 (Buy) and
+1.35% ESP makes us very confident regarding a positive earnings
beat on Sep 4.
What is Driving the Better-than-Expected
Dollar General's merchandising initiatives, including addition
of private-label brands; remodeling endeavors; expansion of the
selling area; and share buyback program make us confident on the
stock outperformance in the second quarter. The positive trend is
seen in the trailing four-quarter average surprise of 4.8%.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
The Buckle, Inc.
), Earnings ESP of +2.20% and a Zacks Rank #2 (Buy).
), Earnings ESP of +5.88% and a Zacks Rank #3 (Hold).
Dollar Tree, Inc.
), Earnings ESP of +1.70% and a Zacks Rank #3 (Hold).
BUCKLE INC (BKE): Free Stock Analysis Report
DOLLAR GENERAL (DG): Free Stock Analysis
DOLLAR TREE INC (DLTR): Free Stock Analysis
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
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