As consumer spending patterns shift amid economic uncertainty, retailers are adapting to evolving market dynamics and consumer preferences. These changes are influencing company performance and stock movements, creating a complex landscape for investors to navigate.
Shares of Dollar General Corp (NYSE:DG) were trading lower on Friday, even after the company reported upbeat second-quarter results.
Here are some analyst takeaways.
- Telsey Advisory Group analyst Joseph Feldman maintained a Market Perform rating, while raising the price target from $120 to $123.
- Goldman Sachs analyst Kash Rangan reiterated a Neutral rating, while lifting the price target from $116 to $126.
Check out other analyst stock ratings.
Telsey Advisory Group: Dollar General reported adjusted earnings of $1.86 per share, beating the consensus of $1.58 per share, fueled by a higher-than-expected comp of 2.8% and an operating margin of 5.6%, Feldman said in a note. The company indicated that it had made a strong start to the third quarter and expects the momentum to continue till year-end, he added.
Management raised their 2025 earnings guidance to $5.80-$6.30 per share, from their prior projection of $5.20-$5.80, which came in higher than the consensus of $5.78 per share, the analyst stated. The better-than-expected results and raised guidance reflect "gains from all income groups as consumers seek value, progress on strategic initiatives, and strong execution in an uncertain macro environment," he further wrote.
Goldman Sachs: Dollar General's comp beat was driven by broad-based growth across categories, Rangan said. Traffic growth accelerated to 1.5%, from a contraction of 0.3% in the previous quarter, he added.
"DG's management team has worked hard to improve the company's positioning through its Back to Basics program, which has resulted in better comp trends and improved margins," the analyst wrote. The company raised its full-year guidance for net sales growth from 3.7%-4.7% to 4.3%-4.8% and for same-store sales growth from 1.5%-2.5% to 2.1%-2.6%, he further stated.
G Price Action: Dollar General shares were down 2.75% at $108.64 at the time of publication on Friday. The stock is trading within its 52-week range of $66.43 to $125.42, according to Benzinga Pro data.
Read More:
Photo: Pamela Brick / Shutterstock.com
