Dollar General Corporation (DG): Today's Featured Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Dollar General Corporation ( DG) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Dollar General Corporation fell $1.13 (-2.4%) to $46.99 on average volume. Throughout the day, 4.1 million shares of Dollar General Corporation exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $46.87-$48.06 after having opened the day at $47.97 as compared to the previous trading day's close of $48.12. Other companies within the Services sector that declined today were: American Learning ( ALRN), down 22.5%, Overseas Shipholding Group ( OSG), down 22.2%, Roundys ( RNDY), down 21.4%, and Information Services Group ( III), down 18.1%.
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Dollar General Corporation operates as a discount retailer primarily in the southern, southwestern, midwestern, and eastern United States. Dollar General Corporation has a market cap of $15.99 billion and is part of the retail industry. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 16.6% year to date as of the close of trading on Thursday. Currently there are 14 analysts that rate Dollar General Corporation a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Dollar General Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, ENGlobal Corporation ( ENG), up 32.5%, Cambium Learning Group ( ABCD), up 20%, Digital Generation ( DGIT), up 17.9%, and Bidz.com ( BIDZ), up 17.3%, were all gainers within the services sector with Sirius XM Radio ( SIRI) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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