Wall Street ratings
Dollar General (DG) is covered by 30 Wall Street analysts who together rate the company a 2.5 on a scale where one is a “strong buy” and five is a “strong sell.” Its ratings are in-line with the broader retail sector.
Competitor Dollar Tree (DLTR) is rated a 2.4. Price Smart (PSMT) and TJX Companies (TJX) have better ratings of 2.3 and 2.0, respectively. Mass merchandisers Walmart (WMT) and Costco (COST) are rated 2.6 and 2.1, respectively, while supermarkets Kroger (KR) and Supervalu (SVU) are rated 2.2 and 2.6, respectively.
Wall Street recommendations
53% of the analysts that cover DG have recommended holding the stock. Jefferies, Telsey Advisory Group, and Buckingham Research are among the brokers who have “hold” recommendations on the company.
40% of analysts recommend buying Dollar General in comparison to 48% for Dollar Tree, 70% for Costco, and only 34% for Walmart.
Bernstein, RBC Capital, and Vetr are among the brokerage firms that suggest buying DG stock.
Comparing target prices and upside potential
Dollar General is currently trading at $70.21, ~38% below its 52-week high price. The retailer’s stock price is likely to bounce back to $79.80 over the next 12 months, which is around 14% more than its current stock price.
Dollar Tree’s stock also has a similar upside. The company, which is trading at $78.08, is likely to register a jump of 15% over the next 12 months.
In comparison, Walmart and Costco have lower upsides of around 2% and 6%, respectively.
Investors looking for exposure to Dollar General through ETFs can consider the ProShares DJ Brookfield Global Infrastructure ETF (TOLZ), which invests 3.7% of its total holdings in the company.