Down Nearly 50% From Its High, Is Dollar General Stock a Buy?
Dollar General (NYSE: DG) is a discount retailer that provides consumers with an array of different products, including clothing, household items, food, and much more. It's the type of company that investors might expect to do well as consumers look to trim their budgets amid inflation.
But while the business is still growing, it's not as fast as the company expected. And profits have also nosedived. The result is a struggling stock whose valuation is around one-half of what it was this time last year. Has this become a bad stock to own, or can Dollar General still make for a good investment?
Dollar General reported its second-quarter earnings last month, and the results weren't great. Although net sales of $9.8 billion for the period ended Aug. 4 rose by 3.9% year over year, the company's same-store sales were down 0.1%. The most alarming figure was the company's 24.2% decline in operating profit, which fell to $692.3 million. Dollar General has been struggling with moving inventory and says it is working on accelerating that process.
Source Fool.com
