Latest news with #BackToBasics
Yahoo
a day ago
- Business
- Yahoo
Why Dollar General Stock Jumped 18% in June
Dollar General jumped on its first-quarter earnings report last month. The company benefited from its Back to Basics plan, and consumers' trading down to spend money there. It also raised its guidance for the full year. 10 stocks we like better than Dollar General › Shares of Dollar General (NYSE: DG) were among the winners last month as the discount retailer soared on better-than-expected results in its first-quarter earnings report and benefited from an upward trend in the stock market over the rest of the month. In the end, it was enough to push the retail stock up 18% for June, according to data from S&P Global Market Intelligence. As you can see from the chart below, nearly all of the stock's gains came on the earnings report early in the month. Dollar General had historically been a strong performer on the stock market, but it plunged in 2023 as its growth and profits fell. However, the stock now seems to be regaining its footing after starting to implement its "Back to Basics" plan and benefiting from changing consumer shopping patterns. The company showed off these trends in its first-quarter earnings report as same-store sales ticked up 2.4%, driving net sales up 5.3% to $10.4 billion, which beat estimates at $10.29 billion. Dollar General benefited from initiatives it took as part of its Back to Basics plan, including reducing out-of-stocks and ensuring that the point-of-sale area was adequately staffed, but management also said that it was benefiting from consumers' trading down in an apparent response to concerns about tariffs and a weakening economy. After several quarters of declining profits, Dollar General reversed course, posting a 5.5% increase in operating profit to $576.1 million, and earnings per share was up 7.9% to $1.78, which topped the consensus at $1.49. It also raised its guidance for the year as it now sees revenue growth of 3.7% to 4.7%, up from 3.4% to 4.4%, and earnings per share of $5.20 to $5.80, up from an earlier range of $5.10 to $5.80. The rest of the month was mostly uneventful for the retailer, though Goldman Sachs downgraded the stock from buy to neutral on June 24, and the stock shrugged off that downgrade. The retailer appears to be benefiting from the current macro environment and is getting back on track after the latest report. While the company still has work to do to execute on the turnaround, Dollar General has a lot of upside potential over the long term, as the stock would double just by getting back to its previous peak. Before you buy stock in Dollar General, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dollar General wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $722,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $968,402!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy. Why Dollar General Stock Jumped 18% in June was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
a day ago
- Business
- Globe and Mail
Why Dollar General Stock Jumped 18% in June
Shares of Dollar General (NYSE: DG) were among the winners last month as the discount retailer soared on better-than-expected results in its first-quarter earnings report and benefited from an upward trend in the stock market over the rest of the month. In the end, it was enough to push the retail stock up 18% for June, according to data from S&P Global Market Intelligence. As you can see from the chart below, nearly all of the stock's gains came on the earnings report early in the month. DG data by YCharts Dollar General has some good news Dollar General had historically been a strong performer on the stock market, but it plunged in 2023 as its growth and profits fell. However, the stock now seems to be regaining its footing after starting to implement its "Back to Basics" plan and benefiting from changing consumer shopping patterns. The company showed off these trends in its first-quarter earnings report as same-store sales ticked up 2.4%, driving net sales up 5.3% to $10.4 billion, which beat estimates at $10.29 billion. Dollar General benefited from initiatives it took as part of its Back to Basics plan, including reducing out-of-stocks and ensuring that the point-of-sale area was adequately staffed, but management also said that it was benefiting from consumers' trading down in an apparent response to concerns about tariffs and a weakening economy. After several quarters of declining profits, Dollar General reversed course, posting a 5.5% increase in operating profit to $576.1 million, and earnings per share was up 7.9% to $1.78, which topped the consensus at $1.49. It also raised its guidance for the year as it now sees revenue growth of 3.7% to 4.7%, up from 3.4% to 4.4%, and earnings per share of $5.20 to $5.80, up from an earlier range of $5.10 to $5.80. The rest of the month was mostly uneventful for the retailer, though Goldman Sachs downgraded the stock from buy to neutral on June 24, and the stock shrugged off that downgrade. What's next for Dollar General The retailer appears to be benefiting from the current macro environment and is getting back on track after the latest report. While the company still has work to do to execute on the turnaround, Dollar General has a lot of upside potential over the long term, as the stock would double just by getting back to its previous peak. Should you invest $1,000 in Dollar General right now? Before you buy stock in Dollar General, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dollar General wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $722,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $968,402!* Now, it's worth noting Stock Advisor 's total average return is1,069% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 30, 2025
Yahoo
5 days ago
- Business
- Yahoo
Dollar General (DG) Delivers Market-Beating Returns in 2025
Dollar General Corporation (NYSE:DG) is one of the Best Dividend Stocks of 2025, surging by more than 49% since the start of the year. A busy shopping aisle filled with discounted items in a retail store. After experiencing several years of declining market share to competitors like Walmart and weakening profits, DG faced challenges in its stock performance. However, the company's 'Back to Basics' turnaround plan, combined with economic disruptions from the trade war, played a key role in restoring both revenue and profit growth. This recovery was reflected in a 16% single-day surge in the stock following the release of its fiscal first-quarter earnings in early June. In the first quarter of 2025, Dollar General Corporation (NYSE:DG) reversed its profit decline trend, reporting a gross margin increase of 78 basis points to 31.0%, driven by lower shrink and higher inventory markups. On the other hand, selling, general, and administrative expenses rose by 77 basis points to 25.4%, mainly due to increased labor costs, higher incentive payouts, and spending on repairs and maintenance. Analysts believe that Dollar General Corporation (NYSE:DG) remains well-positioned for further growth, supported by ongoing store openings and updates to current locations through its Project Elevate and Renovate initiatives. The company offers a quarterly dividend of $0.59 per share and has a dividend yield of 2.10%, as of June 26. While we acknowledge the potential of DG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None. Sign in to access your portfolio
