The Goodlettsville, Tenn.-based American retail chain posted earnings of 84 cents per share, missing estimates of 93 cents a share. Revenue came in at $5.32 billion, short of projections of $5.37 billion.
"The stock continues to struggle," said Virtus Investment Partners Chief Market Strategist Joe Terranova on CNBC's "Halftime Report" Thursday. "This is not a name that I want to be in, especially as gasoline prices continue to rise."
An increase in gasoline prices would translate to less money in consumers' pockets, Terranova said. "The Dollar General customer is more sensitized to an increase in gas prices," he added.
"You [also] have to question a couple of years ago, when they got involved in the food industry, and I am not sure exactly why they did that," he said.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity.
The team believes its strengths outweigh the fact that the company shows low profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: DG