Why Dollar General's Growth Outlook Is Stunning

Oct. 21, 2021 10:42 AM ETDollar General Corporation (DG) StockDG6 Comments
Valuentum
17.88K Followers

Summary

  • We view Dollar General Corporation's capital appreciation upside potential quite favorably.
  • Several sales growth and margin-enhancing initiatives that are currently underway underpin Dollar General's bright free cash flow growth outlook.
  • At the top end of our fair value estimate range, shares of DG have an intrinsic value of $266 per share. The stock is trading at ~$215 at this time.

Dollar General Retail Location. Dollar General is a Small-Box Discount Retailer.

jetcityimage/iStock Editorial via Getty Images

By Valuentum Analysts

In late August 2021, Dollar General Corporation (NYSE:DG) reported a stellar second quarter earnings report for fiscal 2021 (period ended July 30, 2021) that further reinforced our bullish outlook towards the

This article was written by

17.88K Followers
We offer subscriptions and exclusive newsletters. Visit our website at www.valuentum.com for more information. Valuentum is an independent investment research publisher, offering premium equity reports and dividend reports, as well as commentary across all sectors/companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools/products, and more. Valuentum is based in the Chicagoland area. Valuentum is not a money manager, broker, or financial advisor. Valuentum is a publisher of financial information. Please read our Disclaimer that applies to all articles published on Seeking Alpha: https://www.valuentum.com/categories/20110613. Follow us on Twitter: @Valuentum

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Callum Turcan does not own shares in any of the securities mentioned above. Ratings and data as of October 18. Dollar General Corporation (DG) is included in Valuentum’s simulated Best Ideas Newsletter portfolio. For updates, please visit us at www.valuentum.com. This article is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither Valuentum nor any of its affiliates own any securities mentioned in this article. Contact Valuentum for more information about its editorial policies.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About DG Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on DG

Related Stocks

SymbolLast Price% Chg
DG
--