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The Zacks Retail and Wholesale sector has struggled in 2022, underperforming the general market by a fair margin.
A popular company residing in the realm, Dollar General DG, is on deck to unveil quarterly results on December 1st, before the market open.
Dollar General offers a wider selection of merchandise, including consumable items, seasonal items, home products, and apparel.
Currently, the company sports a favorable Zacks Rank #2 (Buy) with an overall VGM Score of a C.
How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
DG shares have been a brighter spot in an otherwise dim market in 2022, up 10% and outperforming the S&P 500.
Image Source: Zacks Investment Research
Over the last month, however, shares have modestly lagged behind the S&P 500’s 5% gain.
Image Source: Zacks Investment Research
DG shares currently trade at a 22.2X forward earnings multiple, above the 20.9X five-year median but below its Zacks sector average.
The company carries a Style Score of a B for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bullish in their earnings outlook over the last several months, with the Zacks Consensus EPS Estimate of $2.55 indicating a 22.6% Y/Y uptick in earnings.
Image Source: Zacks Investment Research
DG’s top-line is also in solid health; the Zacks Consensus Sales Estimate of $9.4 billion suggests an improvement of more than 10% Y/Y.
Quarterly Performance
DG has posted solid quarterly results as of late, exceeding earnings and revenue estimates in back-to-back quarters.
In its latest print, the company registered a 1.7% bottom-line beat paired with a marginal 0.3% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
DG shares are well in the green year-to-date but have modestly lagged behind the S&P 500 over the last month.
Shares trade above the five-year median forward earnings multiple and slightly below the Zacks Retail and Wholesale sector average.
Analysts have taken a bullish stance regarding the quarter to be reported, with estimates indicating Y/Y upticks in both revenue and earnings.
Further, the company has posted strong quarterly results as of late, exceeding earnings and revenue estimates in back-to-back quarters.
Heading into the release, Dollar General DG carries a Zacks Rank #2 (Buy) with an Earnings ESP Score of 1.6%.
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Dollar General Corporation (DG) : 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.
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