Goodlettsville, Tennessee-based Dollar General Corporation (DG) operates as a discount retailer and provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. The company has a market cap of $22.7 billion and offers a wide selection of merchandise, consumable items, seasonal items, home products and apparel.
DG shares have lagged behind the broader market over the past year, surging 18.1% compared to the S&P 500 Index ($SPX) 25.5% surge. Moreover, in 2026, the stock has fallen nearly 22.8%, underperforming the SPX’s 8% rise.
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Focusing on its industry benchmark, the State Street Consumer Staples Select Sector SPDR ETF (XLP) has risen 6.2% over the past year, underperforming the stock. In 2026, however, XLP surged 9.3% and has outperformed the stock.
On May 11, DG stock fell 7.6% after President Trump said the U.S.-Iran ceasefire was on “life support” after he rejected Iran’s latest proposal to end their war. The cost of a barrel of Brent crude oil rose 2.9% and settled at $104.21. Increasing oil prices have already sent a wave of inflation throughout the economy, and for DG, where its customers have the least cushion to absorb higher gasoline prices also struggled.
For the current year, which ends in January 2027, analysts expect DG’s EPS to rise 6.4% to $7.29 on a diluted basis. The company surpassed the consensus estimate in each of the last four quarters.
Among the 29 analysts covering DG stock, the consensus is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” 14 “Holds,” and one “Strong Sell.”
This configuration has remained mostly stable in recent months.
On Mar. 16, Evercore ISI analyst Michael Montani maintained a “Hold” rating on Dollar General and set a price target of $150.
DG’s mean price target of $144.13 indicates a premium of 42.6% from the current market prices. Its Street-high target of $175 suggests a robust 73.1% upside potential from current price levels.
On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
