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NEW YORK (TheStreet) -- Shares of Dollar General (DG) were higher in mid-afternoon trading on Tuesday ahead of the company's 2016 second quarter earnings, due out before Thursday's market open.

Analysts are estimating that earnings and revenue will increase year-over-year.

Wall Street is expecting the Goodlettsville, TN-based discount retailer to report earnings of $1.09 per share on revenue of $5.5 billion.

During the same quarter last year, Dollar General earned 95 cents per diluted share on revenue of $5.1 billion.

MKM Partners maintained a "buy" rating and $97 price target on the stock ahead of the quarterly report.

The firm expects a 2.5% comparable-store sale increase, compared to Wall Street's estimate for growth of 2.7%.

"We expect continued strength in consumables (up 7.6% in 1Q) but think some higher-margin discretionary areas also did well, including home and seasonal merchandise," MKM wrote in a note earlier today.

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"Continued growth in non-consumables should also contribute as DG further leverages its best-in-class category management process and expands assortment in areas like party and stationery, where wallet share remains small," 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

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