NEW YORK (TheStreet) -- Shares of Dollar General (DG) - Get Dollar General Corporation Report were falling 13.83% to $79.11 on heavy trading volume after the Goodlettsville, TN-based discount retailer posted revenue that missed analysts' estimates for the 2016 second quarter.
Following the report, Buckhingham Research noted that the company's second quarter revenue reflected a "miss pure and simple and there's no way to really sugar-coat it," according to a note cited by Barron's.
"The laundry list of reasons for the sales slowdown is also not particularly reassuring," the firm said.
Buckingham mentioned that investors will have to weigh the weakness in results with a potential for better sales trends in the future.
"We also want to know if the outlook for labor costs have changed for Dollar General relative to the most recent quarter," the firm added. "It was not supposed to be a pressure point."
However, Buckingham said that the results were "not too surprising" given the "choppy" results reported by many other retailers for the past quarter.
More than 10.49 million shares of Dollar General stock have traded so far today vs. the 30-day daily average of 2.29 million shares.
Separately, 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.
TheStreet Ratings rated this stock as a "buy" with a ratings score of A.
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. We feel its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: DG