NEW YORK (TheStreet) -- Shares of Dollar General (DG) - Get Report are gaining by 2.76% to $83.45 on Tuesday afternoon, ahead of the company's 2016 first quarter results, due out before Thursday's market open.
Wall Street is expecting the Goodlettsville, TN-based discount retailer to post earnings of 95 cents per share on revenue of $5.28 billion.
Last year, Dollar General reported earnings of 84 cents per diluted share on revenue of $4.92 billion.
Analysts are also expecting comparable store sales growth of 2.4%.
Additionally, MKM Partners has maintained its "buy" rating and $91 price target on the stock before the results are released.
"Our regular store checks suggest Dollar General had a solid quarter, and we look for the numbers to be essentially in line with expectations," the firm wrote in a note earlier today.
"The stock has also done better than most -- up 13% year-to-date vs. a 6% decrease in the XRT and a flat SPX -- but we think DG offers a very good blend of defensive and offensive characteristics," MKM added.
The firm noted that some are viewing Walmart's (WMT) better-than-expected same store sales and 1.5% traffic increase as a negative for dollar stores.
"We don't see it that way, in part because the store experiences are so different. We also believe some of Dollar General's best stores are located near a Walmart supercenter," MKM said.
"We view Walmart's better (but not great) performance more as a potential positive read-through as it relates to the health of the core dollar store customer -- unemployment down, gas down y/y, etc," the firm added.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity.
The team believes its strengths outweigh the fact that the company shows low profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DG