Dollar General Shines In Challenging Economy: Analyst Highlights Bright Future

Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on the shares of Dollar General Corp DG with a price target of $242.
Dollar General will report 1Q23 earnings on Thursday, June 1.
The analyst forecasts 1Q23 EPS of $2.42 versus the FactSet consensus (FS) of $2.39 and anticipates total sales growth of 9% to $9.5 billion, with a comparable sale of 4.5%.
The analyst believes the business should benefit from strength in consumables with continued at-home consumption and high inflation.
Also Read: Dollar General Promotes Kelly Dilts To Finance Chief
The analyst sees value-priced merchandise has appealed to the current consumer, as well as strategic initiatives, such as DG Fresh and NCI (non-consumables initiative).
The analyst added that Dollar General customers are likely to increase reliance on the company in this more challenging economic climate, which should help performance in 2023.
The analyst thinks the company remains well-positioned to gain market share, driven by its convenient locations, strong customer relationships, and value-focused, defensive product mix.
Price Action: DG shares are trading lower by 1.68% at $201.66 on the last check Tuesday.

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