DG – Dollar General Corporation

Dollar General Corporation (DG) Stock Analysis – December 2025

Company Overview

Dollar General Corporation, headquartered in Goodlettsville, Tennessee, is a leading discount retailer in the Consumer Defensive sector. Founded in 1939, Dollar General serves as a vital player in providing budget-friendly products to consumers, selling a comprehensive assortment of goods including consumable products like food, cleaning supplies, personal care items, over-the-counter medicines, seasonal goods, home products, and apparel catered to all age groups. With approximately 19,000 stores located primarily in the southern, southwestern, midwestern, and eastern United States, Dollar General’s business model is founded on convenience and affordability, positioning it favorably to capture a broad market share.

The discount stores industry, part of the consumer defensive sector, has shown robust financial performance and resilience, making it an attractive proposition for investors seeking stability and growth in their portfolios. With a notable total revenue nearing $42.12 billion, Dollar General stands out as an investment with a strong buy recommendation amidst fluctuating economic conditions.

52-Week Price Performance Analysis

The 52-week price chart for Dollar General Corporation (DG) reveals a generally bullish trend with significant appreciation over the past year. The stock started the period around $80, showcasing a strong upward trajectory that saw it exceeding the $120 mark by summer, ultimately reaching a current trading price of approximately $132.37, representing a staggering 68.03% increase from its base level.

Key Chart Insights

• Current Price: $132.37
• 52-Week High: $135.04
• 52-Week Low: $66.43
• Fifty-Day Moving Average: $102.94

The chart displays a clear trend line indicating continuous upward momentum, particularly evident from February to August when the stock consistently achieved higher highs and higher lows. Key support levels have been identified at the $80 mark, which acted as a robust base during early months, while resistance levels initially encountered around $120 were eventually broken, signaling strong bullish momentum.

Additionally, the latest surge in price coinciding with the company’s strong earnings announcement indicates renewed buying interest, although investors should remain vigilant about potential pullbacks given the rapid ascent since the early part of the year.

Financial Performance and Metrics

Dollar General exhibits solid financial health, underpinned by significant revenue generation and effective expense management. Below are the crucial financial metrics from the latest reporting period:

• Total Revenue: Approximately $42.12 billion
• EBITDA: About $3.15 billion
• Earnings Per Share (Q3 2025): $1.28 (exceeding the anticipated $0.95)
• Net Sales (Q3 2025): $10.65 billion (slightly above the expected $10.64 billion)

The company raised its full-year earnings forecast to between $6.30 to $6.50 per share, demonstrating confidence driven by a 2.5% increase in same-store sales. Analysts have evaluated the stock’s intrinsic value based on set price targets ranging from a low of $80.00 to a high of $160.00. The mean target sits at around $127.75, while the median target is slightly higher at $129.50.

Valuation Metrics

• Shares Outstanding: 220,106,028
• Short Interest: 5.98%, indicating favorable investor sentiment

The overall financial health positions Dollar General as a compelling option for investors, showcasing the potential for stock price appreciation.

Recent News and Developments

Dollar General has experienced a slew of positive events that have driven its stock momentum. The strong performance in its third-quarter earnings, released on December 4, 2025, surpassed market expectations, highlighting the company’s robust operational strategies and resilience in delivering essential products even amid economic uncertainties.

Notably:
– The stock surged by approximately 11.6% following the strong earnings announcement, closing at $122.66.
– The company has adjusted projections for future growth, raising same-store sales growth forecasts to 2.5%-2.7%.
– Analyst sentiment remains positive, with firms like Evercore ISI adjusting their price target for Dollar General from $100.00 to $105.00, reflecting ongoing support for the company’s value proposition amid market conditions.

Market Sentiment and Analyst Recommendations

The sentiment among analysts remains overwhelmingly positive towards Dollar General Corporation. With a recommendation key of “buy,” analysts provide a robust mean score of 2.35, derived from the analyses of 28 experts. Market consensus indicates strong confidence in the stock’s growth potential, particularly driven by favorable consumer trends in the discount retail space.

Analyst Price Predictions

• Target High Price: $160.00
• Target Mean Price: $127.75
• Target Median Price: $129.50

Such optimistic forecasts point towards a solid expectation for continued price appreciation in the face of rising demand for affordable products, particularly in uncertain economic climates.

Conclusion

In summary, Dollar General Corporation presents an enticing investment opportunity for retail investors seeking not only stability but also potential growth amid the volatility of the current market landscape. With a proven business model focused on affordability, sound financial metrics, supportive market sentiment, and substantial recent developments, Dollar General stands poised for continued success.

Opportunities

• Strong financial performance with increasing revenue and upward guidance.
• Positive analyst sentiment and recommendations provide a supportive backdrop for potential price appreciation.

Risks

• The recent price surge may lead to volatility and short-term pullbacks.
• Weekly fluctuations and broader market conditions can impact stock performance unpredictably.

Investors are encouraged to conduct thorough research and consider both the current opportunities and associated risks before making investment decisions about Dollar General Corporation (DG).

Metric	Value
Market Cap	$29.4b
Total Debt	$16.5b
Total Cash	$1.2b
Shares Outstanding	220.1m
Float Shares	218.7m