Dollar General stock could be a promising asset to invest in during a recession. This company owns a chain of stores, offering cheap goods at discounts. In times of crisis, this is a good opportunity for businesses to stay afloat. How profitable it is to invest in this asset in the near future, you will find out by reading the financial results of the corporation and the forecasts of analysts.
Dollar General is one of the largest discount retailers in the United States. The company was founded in 1939 by Cal Turner Sr. and his father J.L. Turner. Dollar General began as a small family store in Scottsville, Kentucky. The Turners operated that store for two years before moving to Springfield, Tennessee and opening a new Dollar General store. The company continued to grow over the next few decades, and by 1960 there were over 100 Dollar General stores.
In 1968 Dollar General went public and moved its headquarters to Goodlettsville, Tennessee. In November 2022, the corporation was capitalized at approximately $59 billion. Dollar General stock can now be purchased on the NYSE stock exchange or through an online broker.
Dollar General is one of the largest discount retailers in the United States. Dollar General offers a wide variety of merchandise including consumables, seasonal items, apparel and home goods. Dollar General strives to offer customers "high quality, low cost" products in a convenient format.
The company's mission is to provide "the right product at the right price in the right place" Dollar General strives to create a shopping experience that is easy and enjoyable for shoppers. In addition to offering a wide variety of merchandise, the retailer also provides additional services such as money orders, bill payments and money orders.
The company is adhering to Dollar General's stock buyback program. This allowed it to reduce the number of diluted shares outstanding to 227.5 million, or 3.8%. Through the buyback program, the retailer has neutralized lower profitability. This explains the fact that Dollar General's diluted earnings per share (EPS) grew faster than net sales in the second quarter of 2022.
Dollar General's diluted EPS was $2.98 in the second quarter of 2022. This figure was up more than 10% year-over-year. Operating profit margin in the second quarter was weaker than for the same period in 2021. However, the buyback policy allowed the retailer to reduce the number of securities outstanding. This, in turn, led to a concentration of earnings among the reduced number of shares and higher earnings per share.
The retailer reported that in the second quarter of 2022, net sales at chain stores increased 9% compared to the same period last year. That figure reached $9.4 billion during the three-month period. The increase in net sales was driven by increased demand for household goods and food. This is due to consumers spending less on high-priced items and more on necessities.
Operating income was $913 million, up 7.5%. The retailer ended the second quarter with net income of $678.0 million, compared to $637.0 million for the same period last year. Since the beginning of 2022, the corporation's operating cash flow was $948 million. The corporation's management also reported a quarterly dividend of $0.55 per Dollar General share.
Analysts are forecasting Dollar General earnings per share of $11.5 for 2023. The stock price could exceed $260 by that time. By 2025. In 2025, Dollar General's earnings per share are expected to be $13.9. The stock could exceed $300 per share by then. Under current circumstances, the company has the potential to grow over the next few years.
In March 2020, Dollar General's stock price was at $150. After the pandemic began, quotes began to rise.
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During the year (November 2021 to November 2022) Dollar General's stock price went from $225 to $250.
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