NEW YORK (TheStreet) -- Shares of Dollar General (DG) - Get Report declined 17.20% to $76 on heavy trading volume late afternoon Thursday as Credit Suisse cut its stock rating to "neutral" from "outperform," following the Goodlettsville, TN-based discount retailer's worse-than-expected second quarter results.
The firm also lowered its price target to $80 from $95.
Before today's market open, Dollar General reported revenue of $5.39 billion, falling short of Wall Street's expected $5.5 billion.
The company's second quarter results demonstrated a "material deceleration" in earnings momentum and the stock's impressive run-up ended sooner than anticipated, Credit Suisse noted, according to TheFly.
Dollar General still expects 2016 earnings to fall between 10% to 15%, but raised its full-year capital expenditures outlook to be in the range of $580 million to $630 million to include its purchase of 42 Walmart (WMT) Express stores.
The firm noted Dollar General expects competition to intensify from its peers in the near term.
About 24.41 million of Dollar General's shares have changed hands so far today vs. its average volume of 2.29 million shares per day.
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. TheStreet Ratings has this to say about the recommendation:
We rate DOLLAR GENERAL CORP as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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: