Strong Performance Today In Retail From Dollar General Corporation (DG)

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 down 1.4%. By the end of trading, Dollar General Corporation rose $1.43 (2.8%) to $51.90 on average volume. Throughout the day, 6.8 million shares of Dollar General Corporation exchanged hands as compared to its average daily volume of 5.1 million shares. The stock ranged in a price between $50.17-$51.92 after having opened the day at $50.25 as compared to the previous trading day's close of $50.47. Other companies within the Retail industry that increased today were: Stein Mart ( SMRT), up 3.3%, Big Lots ( BIG), up 2.4%, Pantry ( PTRY), up 1.9%, and Michael Kors Holdings ( KORS), up 1.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Dollar General Corporation, a discount retailer, engages in the provision of various merchandise products in the United States. Dollar General Corporation has a market cap of $16.33 billion and is part of the services sector. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are up 14.5% 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 growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, dELiA*s ( DLIA), down 19.7%, ALCO Stores ( ALCS), down 7.1%, BioScrip ( BIOS), down 5.8%, and PC Connection ( PCCC), down 5.4%, were all laggards within the retail industry with ( AMZN) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.