| Stock (Symbol) | Stock Price | |
Dollar General (DG) |
$43 |
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| Data is as of | Expected to Report | Sector |
December 28, 2012 |
Mar 22 |
Retail & Travel |
| Sharek’s Take | ||
 Discount store stocks were strong from 2009 through mid-2012 as people cut back because of a poor, then slow, economy. Now dollar store sales are calming down and managements are issuing more cautious outlooks — which is lowering profit estimates, and dropping stock prices. Dollar General is down around 20% from its highs and selling for 13 times earnings, and I’m betting this is a good entry point for long-term investors. |
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| Ten-Year Chart | ||
 Dollar General has been around since 1955 and is the largest discount retailer in the US with over 1000 stores. This ten-year chart only shows the recent IPO history. DG was taken private in 2007 at $22 a share, then went public again in 2009 at $22, (great timing). I think DG will resume the previous uptrend. |
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| DG Profit History | ||
 The stock has an estimated Long Term Growth Rate of 17%, but profit growth is only expected to average 11% the next four quarters. These estimates were just lowered, and could continue to come down. I feel DG is worth 16 times earnings. This is a good entry point for buy-and-hold investors. |
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| Power Ranking | Bottom Line | |
Conservative Portfolio
7 of 18 |
There’s risk Dollar General could continue to be weak as the economy strengthens. I’d take the risk and buy low, and get DG at 13 times earnings. This stock is ranked 7th in the Conservative Growth Portfolio Power Rankings. | |
