Is Dollar General Stock a Buy?
The odds are good you occasionally drive by one, even if you have never set foot inside one. Dollar General (NYSE: DG) operates more than 16,700 stores in 46 states and notably targets the smaller markets that bigger rival Walmart (NYSE: WMT) generally shuns. It's also spent the last few years tiptoeing deeper into the consumer staples market, chipping away at Walmart's hold on consumers with a faster and simpler shopping trip thanks to smaller store footprints.
The formula it's following has undoubtedly worked. Dollar General's store count has nearly doubled in just the past 10 years. And while most retailers have been stymied by COVID-19, this discounter's top line grew 24% year over year during the second quarter. Same-store sales improved by nearly 19%.
The second quarter is a microcosm (albeit an accelerated one) of the company's historical success. Dollar General hasn't posted lower revenue in any quarter in over a decade, and operating income growth has been almost as impressively consistent. The stock price has reflected the retailer's growth as well, up more than 800% over the course of the past 10 years.
Source Fool.com
