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 $1.09 (2.1%) to $53.58 on light volume. Throughout the day, 3,126,796 shares of Dollar General Corporation exchanged hands as compared to its average daily volume of 4,763,100 shares. The stock ranged in a price between $53.05-$54.16 after having opened the day at $53.11 as compared to the previous trading day's close of $52.49. Other companies within the Retail industry that increased today were: ALCO Stores ( ALCS), up 19.5%, Stein Mart ( SMRT), up 13.2%, Overstock.com ( OSTK), up 10.2% and China Jo-Jo Drugstores ( CJJD), up 8.8%.
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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 $17.1 billion and is part of the services sector. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 19.1% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Dollar General Corporation a buy, no analysts rate it a sell, and 7 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, Orchard Supply Hardware ( OSH), down 10.7%, Liquidity Service ( LQDT), down 5.5%, Arden Group ( ARDNA), down 3.4% and ValueVision Media ( VVTV), down 3.4% , 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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