Dollar General Corporation (DG): Today's Featured Retail 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 Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Dollar General Corporation fell $0.65 (-1.2%) to $52.18 on light volume. Throughout the day, 1,228,131 shares of Dollar General Corporation exchanged hands as compared to its average daily volume of 4,918,400 shares. The stock ranged in price between $52.14-$52.99 after having opened the day at $52.82 as compared to the previous trading day's close of $52.83. Other companies within the Retail industry that declined today were: China Jo-Jo Drugstores ( CJJD), down 5.5%, Liquidity Service ( LQDT), down 4.3%, Gaiam Inc. Class A ( GAIA), down 3.0% and Acorn International ( ATV), down 2.9%.
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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 $17.2 billion and is part of the services sector. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 19.8% year to date as of the close of trading on Friday.

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 positive front, Orchard Supply Hardware ( OSH), down 23.5%, bebe stores ( BEBE), down 6.2%, Roundys ( RNDY), down 4.8% and Cache ( CACH), down 4.5% , were all gainers within the retail industry with Lowe's Companies ( LOW) being today's featured retail industry leader.

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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