Why Analysts Became Much More Bullish on Dollar General

March 13, 2016 by Paul Ausick

Dollar General Corp. (NYSE: DG) made our list of stocks to own for the next decade on the strength of its sales growth, low costs and dividend payment. Its main rival, Dollar Tree Inc. (NASDAQ: DLTR), was near completion of its acquisition of Family Dollar Stores, and the company’s stock bounced around with Dollar General’s until last Wednesday, when Dollar General shares jumped more than 10% after reporting $1.30 in earnings per share (EPS) and $5.29 billion in revenue, well above consensus estimates calling for EPS of $1.17 and revenues of $4.94 billion.

Dollar General also boosted its annual dividend from $0.88 per share to $1.00 per share. Dollar Tree does not pay a dividend, and its shares dipped after fourth-quarter results failed to live up to expectations. And though neither store is near in size to Wal-Mart Stores Inc. (NYSE: WMT), Dollar General is outperforming the mega-retailer while Dollar Tree is trailing it in share price gains.

Analysts have noticed the solid performance at Dollar General and many have raised price targets recently:

  • Barclays raised its price target from $76 to $79 with an Equal Weight rating.
  • BMO boosted its price target from $85 to $95.
  • Jefferies upped its price target from $81 to $96 and rates the stock a Buy.
  • Raymond James also raised its price target from $85 to $95.
  • UBS has Buy lifted its price target from $82 to $93.


Dollar General stock closed at $85.01 on Friday, after posting a new 52-week high of $85.05. The stock’s 52-week low is $59.75, and the consensus price target is $86.70, although recent changes may not yet be figured in. The high price target is $95 and the low target is $79.

Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.