Dollar General Is Down 19% From Its High: Time to Buy?
Dollar General (NYSE: DG) investors have underperformed the S&P 500 by a wide margin in recent weeks. The retailer is generating strong sales and earnings results, even as consumer spending patterns shift. Its winning merchandising and store expansion strategy has helped boost returns in 2022, and management is projecting another strong year ahead.
But investors are worried about a softening earnings outlook, which helped push the stock price down nearly 20% from recent highs last October. Let's look at whether Wall Street is overreacting to that short-term earnings challenge.
Dollar General's preliminary earnings announcement in late February revealed that Q4 sales trends were slightly worse than expected. Its full update in mid-March added context around that headline result.
Source Fool.com
