DG is still growing its outlets; it’s planning on building another 1,000 in 2017 as well as refurbishing and relocating 900 older stores to its grand total up to around 14,000 stores in 43 states.
This kind of growth has kept it chugging along at about 15% a year for the past five years.
The company operates over 16,000 stores primarily in the eastern half of the United States.
The company has seen earnings grow at a rate of 17% per year over the last three years while sales have increased at a rate of 8%.
In the most recent quarter earnings increased by 8% and sales were up by 9%.
Analysts expect earnings to grow by 10% for fiscal 2020 while sales are expected to increase by 8.3%.
Dollar General’s management efficiency measurements are solid with a return on equity of 25.7% and a profit margin of 8.0%.
Suggested strategy: Buy DG with a maximum entry price of $159.00. I would set a target of at least $205.00 over the next 9 to 12 months. I would suggest a stop loss at the $142.00 level.
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