Is It Finally Time to Buy Dollar General Stock?
Shares of Dollar General (NYSE: DG) recently dipped after it posted a mixed fourth quarter. Reported earnings per share fell 30% to $1.84 and missed estimates by a nickel. But excluding some big tax benefits from the prior-year quarter, its EPS went up 24% annually. Dollar General expects its same-store sales to jump 2.5% in fiscal 2020, its revenue to grow 7% to $27.4 billion, and for its EPS to climb 7% at the midpoint to $6.30-$6.50. Dollar General struggled with peaking store traffic throughout most of fiscal 2018, but it offset that weakness with bigger average transactions per customer. However, customer traffic and average transactions both rose during the fourth quarter, thanks to the early release of government SNAP assistance (formerly known as the Food Stamp program) for low-income households.