DG Stock Recent News

Stocks soared in the first trading day of President Trump's second term, and some of the biggest winners today were Wayfair (W 8.09%), Dollar General (DG 5.11%), and Five Below (FIVE 5.76%).

Two of the worst-performing stocks in the retail sector over the past year have been Dollar General (DG -1.18%) and Five Below (FIVE -2.36%), with both stocks' value cut in half over the past 12 months, as of this writing.

In this video, Motley Fool contributor Jason Hall explains why Dollar General's (DG -1.18%) turnaround represents a great profit opportunity, if not a market-beating one.

Regularly investing in growing companies is a recipe for wealth-building gains over many years. But when you can buy shares of these companies at attractive valuations, it can help your investments perform even better.

Shares of Dollar General (DG 0.32%) took a dive last year. Challenges with inflation, weak consumer spending in its demographic, operational struggles, and market share losses to Walmart and other larger competitors all contributed to the downturn.

Dollar General remains a fundamentally profitable business, despite facing headwinds due to its core demographic's limited disposable income, leading to a marked decrease in growth and margins. The company's strategic focus on low-price essentials and store updates positions it for long-term success, even amidst economic downturns. Mr. Market's negative reaction has led to a 31% undervaluation of Dollar General shares, presenting a strong buying opportunity.

Dollar General's stock has dropped 70.1% since August 2022, despite the market rising by 41%, but the company remains profitable and growing. Revenue increased from $34.22 billion in 2021 to $38.69 billion in 2023, driven by new store openings and rising same-store sales. Profit margins have contracted due to higher costs and inventory issues, but the company is still financially healthy with a strong balance sheet.

It may feel like déjà vu for Dollar General (DG -0.36%) investors these days. The stock was down 44% in 2024 in what was a near repeat performance of how badly it did in the previous year, when its shares fell by nearly 45%.

Retail companies have been through the gauntlet. The pandemic, rising inflation, and the shift of consumer spending to travel and other services have pressured the stock performance of many retail companies.

Tom Yeung here with your Sunday Digest.  In 1909, a young physics graduate student proposed building a magnetically levitated train inside a vacuum tube.