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 down 1.3%. By the end of trading, Dollar General Corporation rose $1.55 (3.2%) to $50.19 on heavy volume. Throughout the day, 8,146,803 shares of Dollar General Corporation exchanged hands as compared to its average daily volume of 3,844,800 shares. The stock ranged in a price between $49.22-$51.20 after having opened the day at $49.35 as compared to the previous trading day's close of $48.64. Other companies within the Services sector that increased today were: National Research Corporation ( NRCIB), up 24.5%, Envoy Capital Group ( ECGI), up 20.3%, ChinaNet Online Holdings ( CNET), up 15.2% and CIBT Education Group ( MBA), up 14.1%.
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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 $17.5 billion and is part of the retail industry. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 10.3% 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 5 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, increase in net income, revenue growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Orchard Supply Hardware ( OSH), down 22.6%, General Employment ( JOB), down 12.1%, Giant Interactive Group ( GA), down 11.2% and Newlead Holdings ( NEWL), down 10.5% , were all laggards within the services sector with Comcast ( CMCSA) 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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