Analysts remain mostly bullish on Dollar General stock. Of 28 brokerages covering the off-price retailer, 20 have rated the stock a Buy or Strong Buy, and six more have Hold ratings. At a share price of around $214.20, the upside potential based on a median price target of $250.00 is 16.7%. At the high price target of $270.00, the upside potential is 26%.

Fourth-quarter revenue is forecast at $8.71 billion, up 2.2% sequentially and 3.6% year over year. Adjusted EPS are forecast at $2.57, up 23.6% sequentially but down 1.9% year over year. For full fiscal 2022 that ended in January, Dollar General is expected to report EPS of $10.17, down 4.2%, on sales of $34.27 billion, up 1.5%.

Shares trade at 20.9 times expected 2022 EPS, 19.1 times estimated 2023 earnings of $11.14 and 17.3 times estimated 2024 earnings of $12.29 per share. The stock’s 52-week range is $173.50 to $240.14. Dollar General pays an annual dividend of $1.62 (yield of 0.79%). Total shareholder return for the past year is 10.6%.

Lennar

Homebuilder Lennar Corp. (NYSE: LEN) has seen its share price decline by about 2.5% over the past 12 months. In early December, shares reached a 12-month peak, up 34% for the same period. Rising interest rates will certainly affect homebuilders, but they could still remain below 5% for several more months. Investors do not appear to see the housing market that way, taking most homebuilders into bear territory since early December. Lennar is set to report fiscal first-quarter results after markets close on Wednesday.

Of 20 analysts covering the stock, 14 have a Buy or Strong Buy rating and five more rate the stock at Hold. At a share price of around $85.20, the upside potential to a median price target of $127.50 is 49.6%. At a high target of $163.00, the upside potential is 91.3%.

For its first quarter of fiscal 2022, Lennar is expected to report revenue of $6.19 billion, down 26.7% sequentially and up 21.8% year over year. Adjusted EPS are pegged at $2.58, down nearly 41% sequentially but about 26.5% higher year over year. For the full fiscal year ending in November, EPS are forecast at $15.87, up 22.1%, on sales of $32.68 billion, up more than 20%.

The stock trades at 5.2 times expected 2022 EPS, 4.9 times estimated 2023 earnings of $16.87 and 4.6 times estimated 2024 earnings of $18.15 per share. The stock’s 52-week range is $79.52 to $117.54, an all-time high posted in December. Lennar pays an annual dividend of $1.00 (yield of 1.77%). Total shareholder return for the past year is negative 4.7%.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use