This Analyst Is Bullish On Dollar General, So Long As It Hovers Above This Price Range

Zinger Key Points
  • A renewed expansion effort was announced in late-July with three new distribution centers.
  • The retail behemoth currently has more than 18,000 locations nationwide.
This Analyst Is Bullish On Dollar General, So Long As It Hovers Above This Price Range

As Dollar General Corp DG gets ready to release positive second-quarter numbers before of Thursday's opening bell, the stock may reach new all-time highs this week.

Since Q1 2020, the discount retail behemoth has outperformed Street expectations nine out of the ten times. Investors are now pricing in a significant swing for Dollar General stock, with a potential implied move of 7.7% either way, based on movements in the options market.

The Call: 28% return potential

“I am bullish on DG so long as the stock remains above $228.00-$230.00,” analyst Gianni Di Poce wrote in his weekly “Benzinga Pro Insider Report.” “The upside target is $325.00-$328.00.”

“Valuation is at a pretty fair level,” the analyst said. “With P/E at 26, Price-to-Sales at 1.72, and an EV to EBITDA of 19.55.”

From a technical standpoint, the stock is consolidating within an ascending triangle pattern. A close above resistance could lead to a resolution higher in the uptrend from this continuation pattern.

With more than 18,000 locations nationwide, Dollar General has overtaken other retailers to claim the title of largest U.S. retailer by number of locations, according to Forbes.

It is not done growing yet. The Tennessee-based company announced a renewed expansion effort in late-July with three new distribution centers in Arkansas, Colorado and Oregon. The move is expected to strengthen Dollar General’s internal supply flows as the country still struggles with supply chain issues.

Aside from new distribution centers, the company is making significant internal changes with one new addition to the company board of directors, and long time CEO Todd Vasos being succeeded by Jeffery Owen.

Other Analyst Ratings: Truist Securities recently affirmed its hold rating on DG, and BMO Capital downgraded the stock to market-perform.
Price action: Shares of Dollar General climed 0.74% to $249.42 intraday Wednesday, according to data from Benzinga Pro.  

Posted In: dollar generalAnalyst ColorEarningsMid CapNewsPrice TargetOptionsTopicsMarketsAnalyst RatingsMediaTrading IdeasGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.