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Opinions Jim Cramer - Mad Money
Dollar General Corp.DGDON'T BUYJun 05, 2023
Jim Cramer - Mad MoneyStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Company has been a "turn around story" the past year. Recent market selloff creating buying opportunity. Stores located across America which creates large footprint for retail sales.
Brendan CaldwellThe question was on his preference between Dollar General and Dollar Tree in the U.S. Dollar General has cratered so it looks like a buying opportunity but actually isn't since it benefited from the pandemic and may just be returning to normal levels. This also causes him to be cautious on Dollar Tree.
Its earnings release on June 1, 2023, missing both earnings and sales estimates sent shares significantly lower. The broader markets began moving higher in May as investors felt more confident in the economy and the markets, and consumer staples stocks, which were a safe haven for investors in an uncertain period from 2022, moved lower in May. The move was mostly sentiment and risk-related, until its earnings release in June which sent shares even lower.
We feel its valuation is now more in line with its historical range, and if earnings can meet or beat estimates, we would expect shares to gradually climb back.
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It is the worst performing consuming name he owns among seven. Has had challenges, fundamentally and technically. Hope things work out.
Joe TerranovaDG has executed very well but they've been dealing with cost inflation, consumers buying lower-margin consumables vs. discretionary and "shrink" (theft). Owns Dollar Tree, which suffers similar problems, but DT has been introducing more price points as the new CEO restructure, so she sees more potential here.
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Premium contentDollar General Corporation has been delivering value to shoppers for over 75 years. dollar general helps shoppers save time. save money. every day!® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, house wares and seasonal items at low everyday prices in convenient neighborhood locations. dollar general operates 12,198 stores in 43 states as of july 31, 2015. in addition to high quality private brands, dollar general sells products from america's most-trusted manufacturers such as clorox, energizer, procter & gamble, hanes, coca-cola, mars, unilever, nestle, kimberly-clark, kellogg's, general mills, and pepsico. for more information on dollar general, please visit www.dollargeneral.com. in dollar general, you'll find a company that embraces substance and simplicity. our mission is to serve others. and, we think our customers are best served when we keep it real and keep it simple.
DG shares have been declining since its peak last October at $260, perhaps bottoming in late March around $200 and now trending 10% higher. Though its last quarter was in-line, DG noted that higher-than-expected construction costs to build out its distribution network and more labour costs hampered its operating leverage. Read The dollar wars for our full analysis.
They just delivered a horrible quarter, blaming a weak economy, but that's strange because these bargain stores are supposed to thrive when the consumer feels stretched. DG is losing market share in categories like groceries. Three analysts have downgraded them.