Why Dollar General (DG) Stock Is Higher On Monday

NEW YORK (TheStreet) --Shares of Dollar General Corp. (DG) are higher by 10.36% to $64 today as the stock continues to gain on the news that billionaire activist investor Carl Icahn  (IEP) bought a 9.4% stake in Dollar General's rival, Family Dollar  (FDO), and said he wants to merge the two companies. 

Dollar General's market capitalization is three-times greater than Family Dollar, Fox News said.

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Separately, 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, growth in earnings per share, notable return on equity, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins."

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