NEW YORK (TheStreet) -- Even as earnings and revenue missed estimates in its first quarter, Dollar General (DG) stock is gaining Tuesday. Wall Street appears heartened that first-quarter revenue climbed 6.8%, same-store sales edged 1.5% higher and management reiterated its forecast for full-year earnings between $3.45 and $3.55 a share, three positive trends amid a challenging retail climate.
Over the three months to April, the discount chain earned 72 cents a share, a penny short of what analysts surveyed by Thomson Reuters expected. Revenue of $4.52 billion fell just shy of estimates of $4.56 billion.
By late morning, shares had added 4% to $56.49. Trading volume of 4.4 million shares had exceeded its three-month daily average of 3.8 million.
TheStreet Ratings team rates DOLLAR GENERAL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOLLAR GENERAL CORP (DG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
- You can view the full analysis from the report here: DG Ratings Report