Here's Why Dollar General Stock Is a No-Brainer Buy
With its share price up by around 5% over the last 12 months, Dollar General (NYSE: DG) is one of the few companies that escaped the 2022 bear market largely unscathed. The company's recession-resistant business model and compelling competitive advantages can help it maintain market-beating momentum. Let's dig deeper.
Founded in 1939, Dollar General operates a chain of deep discount stores primarily located in underserved communities like inner cities and rural towns. The company keeps its products at rock-bottom prices by placing its stores in areas where land and labor are cheap, offering a no-frills shopping experience, and stocking its own private-label products, which are often cheaper imitations of national brands. With macroeconomic uncertainties mounting, this business model may come in handy.
According to a poll of economists conducted by Bloomberg in December, 70% expect the U.S. economy to enter a recession in 2023 as challenges like rising rates and high inflation eat into consumer spending.
Source Fool.com
