Dollar General Corporation (DG): Today's Featured Services 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 Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.6%. By the end of trading, Dollar General Corporation rose 74 cents (1.5%) to $48.77 on light volume. Throughout the day, 3.2 million shares of Dollar General Corporation exchanged hands as compared to its average daily volume of 4.6 million shares. The stock ranged in a price between $47.85-$48.83 after having opened the day at $48.01 as compared to the previous trading day's close of $48.03. Other companies within the Services sector that increased today were: Men's Wearhouse ( MW), up 19.1%, FreeSeas ( FREE), up 16.4%, AeroCentury Corporation ( ACY), up 11.7%, and ChinaNet Online Holdings ( CNET), up 11.2%.
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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 $15.7 billion and is part of the retail industry. The company has a P/E ratio of 17.4, below the S&P 500 P/E ratio of 17.7. Shares are up 8.9% year to date as of the close of trading on Wednesday. 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, 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.

On the negative front, American Learning ( ALRN), down 17.4%, Lentuo International ( LAS), down 11.5%, Hastings Entertainment ( HAST), down 10%, and SuperMedia ( SPMD), down 9.7%, were all laggards within the services sector with Pandora Media ( P) being today's services sector laggard.

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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