Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Dollar General as such a stock due to the following factors:
- DG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $369.5 million.
- DG has traded 1.3 million shares today.
- DG is trading at a new lifetime high.
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More details on DG:
Dollar General Corporation, a discount retailer, provides merchandise products in the United States. DG has a PE ratio of 17.6. Currently there are 6 analysts that rate Dollar General a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for Dollar General has been 4.6 million shares per day over the past 30 days. Dollar General has a market cap of $17.2 billion and is part of the services sector and retail industry. The stock has a beta of 0.36 and a short float of 2.7% with 1.44 days to cover. Shares are down 4.4% year-to-date as of the close of trading on Thursday.
rates Dollar General as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- DOLLAR GENERAL CORP has improved earnings per share by 7.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DOLLAR GENERAL CORP increased its bottom line by earning $3.17 versus $2.86 in the prior year. This year, the market expects an improvement in earnings ($3.51 versus $3.17).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Multiline Retail industry and the overall market, DOLLAR GENERAL CORP's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 70.79% to $251.46 million when compared to the same quarter last year. In addition, DOLLAR GENERAL CORP has also vastly surpassed the industry average cash flow growth rate of -79.44%.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- You can view the full Dollar General Ratings Report.