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DG-DOLLAR GENERAL CORP

Dollar General Faces Stock Drop Amid Inflation and Competition, But Analysts See Potential Recovery Ahead

Monday

06 January, 2025

As Dollar General grapples with a 71% stock decline since its peak, analysts see a glimmer of hope with plans for 730 new stores and a potential upside of 24.3%. Can this discount retailer turn the tide amidst inflation and fierce competition?

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67
Key Takeaways
  • Dollar General's stock is perceived as undervalued with a P/E ratio of 12.5 following a significant price drop.
  • The company aims to expand by opening 730 new locations while maintaining a consistent annual sales growth of 9%.
  • Analysts have raised the price target to $95, suggesting a potential increase of 24.3%.
  • The shift in consumer preferences towards budget-friendly options due to inflation benefits Dollar General's market position.
  • With a dividend yield around 3%, it offers a compelling investment opportunity.
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