11 Analysts Have This To Say About Dollar General

In the latest quarter, 11 analysts provided ratings for Dollar General DG, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $87.18, a high estimate of $101.00, and a low estimate of $69.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 3.42%.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Dollar General among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|---------------------|---------------|---------------|--------------------|--------------------| |Paul Lejuez |Citigroup |Raises |Neutral | $101.00|$69.00 | |Peter Keith |Piper Sandler |Raises |Neutral | $81.00|$79.00 | |Robert Ohmes |B of A Securities |Lowers |Buy | $90.00|$95.00 | |Joseph Feldman |Telsey Advisory Group|Maintains |Market Perform | $85.00|$85.00 | |Paul Lejuez |Citigroup |Lowers |Sell | $69.00|$73.00 | |Michael Lasser |UBS |Lowers |Buy | $95.00|$108.00 | |Joseph Feldman |Telsey Advisory Group|Lowers |Market Perform | $85.00|$88.00 | |Krisztina Katai |Deutsche Bank |Lowers |Hold | $80.00|$90.00 | |Kate McShane |Goldman Sachs |Lowers |Buy | $93.00|$104.00 | |Simeon Gutman |Morgan Stanley |Lowers |Equal-Weight | $80.00|$100.00 | |Karen Short |Barclays |Lowers |Overweight | $100.00|$102.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Dollar General. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Dollar General compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Dollar General's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into Dollar General's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Dollar General analyst ratings.

Delving into Dollar General's Background

With more than 20,000 locations, Dollar General's banner is nearly ubiquitous across the rural United States. Dollar General serves as a convenient shopping destination for fill-in store trips, with its value proposition most relevant to consumers in small communities with a dearth of shopping options. The retailer operates a frugal store of about 7,500 square feet and primarily offers an assortment of branded and private-label consumable items (80% of net sales) such as paper and cleaning products, packaged food, and health and beauty items at low prices. Dollar General also offers a limited assortment of seasonal merchandise, home products, and apparel. The firm sells most items at a price point of $10 or less.

Breaking Down Dollar General's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Dollar General displayed positive results in 3M. As of 31 January, 2025, the company achieved a solid revenue growth rate of approximately 4.52%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Staples sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 1.86%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Dollar General's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.59%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Dollar General's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.61%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Dollar General's debt-to-equity ratio stands notably higher than the industry average, reaching 2.36. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.