Dollar General Corporation (DG): Today's Featured Retail Winner

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 Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day up 0.7%. By the end of trading, Dollar General Corporation rose 51 cents (1.1%) to $46.05 on light volume. Throughout the day, 4.4 million shares of Dollar General Corporation exchanged hands as compared to its average daily volume of 6.4 million shares. The stock ranged in a price between $45.33-$46.16 after having opened the day at $45.60 as compared to the previous trading day's close of $45.54. Other companies within the Retail industry that increased today were: QKL Stores ( QKLS), up 23.1%, Cache ( CACH), up 16.8%, Pacific Sunwear ( PSUN), up 9.4%, and Bon-Ton Stores ( BONT), up 7%.
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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 $14.96 billion and is part of the services sector. The company has a P/E ratio of 16.6, below the S&P 500 P/E ratio of 17.7. Shares are up 3.2% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Dollar General Corporation a buy, no analysts rate it a sell, and seven 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 negative front, GameStop ( GME), down 6%, dELiA*s ( DLIA), down 3.8%, Casual Male Retail Group ( CMRG), down 2.4%, and Casual Male Retail Group ( DXLG), down 2.4%, were all laggards within the retail industry with J.C. Penney ( JCP) being today's retail industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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