Dollar General Stock Is Rebounding: Time to Buy Shares?
Dollar General (NYSE: DG) stock has had a brutal 2023, its worst year since the discount retailer went public in 2009. After posting strong growth and margins throughout the pandemic, the company now faces some major headwinds, and it has posted some of its worst financial numbers in decades. It is also struggling relative to its direct competitors, which has investors fearing that it's losing market share.
The stock trades down 55% from all-time highs, by far its worst decline ever. But in recent days, the stock rebounded by more than 10% after the company announced the return of former CEO Todd Vasos to the top job. But that doesn't mean all is well with Dollar General.
Dollar General is the largest rural discount retailer in the United States. With the majority of its locations in small towns across the country, the business thrived by being a convenient location for shoppers on tight budgets to pick up cheap goods. It increased its footprint significantly in the past 10 years and currently has just under 20,000 stores. That expansion took place under the watch of CEO Todd Vasos, who helmed the chain from 2015 until November 2022. He oversaw a Dollar General that consistently grew both its store count and its same-store sales, all while keeping its profit margins fairly stable.
Source Fool.com
