Dollar General and Dollar Tree to Open Near 52-Week Highs

Yesterday, the day that the 99 Cents Only Stores

agree to be taken private, competitor discount variety stores Dollar General

and Dollar Tree

reached new 52-week highs of $39.40 and $80.99 per share, respectively.

boosted its sales forecast and its shares were purchased by Warren Buffett's Berkshire Hathaway (NYSE:

) in the second quarter. The company also launched an e-commerce site this summer. The Goodlettsville, Tenn.-based retailer has about 9,500 stores in 35 states offering such things as prepackaged foods, seasonal items and personal care items. Founded in 1939, Dollar General now has a market cap of $13.1 billion. The price-to-earnings ratio is higher than the industry average, but so is its operating margin. The long-term EPS growth forecast is 16.5%. Twelve of 18 analysts consider it a Buy of Strong Buy; none rate it a Sell. The share price is almost 23% higher than six months ago. The stock has outperformed competitors Family Dollar

and Walmart

over that time.

's board recently approved a plan to repurchase $1.5 billion of its common shares. Revenue is projected to grow more than 10% in the current quarter and nearly 12% for the full year. Chesapeake, Va.-based Dollar Tree operates more than 4,000 stores under various banners throughout the U.S. and in Canada. Its market cap is $9.6 billion. It was founded in 1986. Earnings per share are anticipated to grow 17.3% over the next five years and the return on equity is 30.4%. Its operating margin is also higher than the industry average. Eleven of 19 analysts rate the stock a Buy or Strong Buy. The share price is more than 43% higher than six months ago. Over that time, the stock has also outperformed Dollar General and the 99 Cents Only Stores.

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