Why Investors Should Pay Attention to Dollar General Stock Despite the Recent Dip
The knee-jerk reaction makes sense on the surface. Dollar General (NYSE: DG) missed its third-quarter earnings estimates, and investors panicked. Fanning the bearish flames is the company's not-so-hot guidance for the quarter now underway.
As has been the case so many times for other stocks this year, though, last Tuesday's 8% stumble suffered by Dollar General shares is a great buying opportunity. The retailer's Q3 numbers notwithstanding, the long-term story here remains a compelling one.
All told, Dollar General turned nearly $9.5 billion worth of sales into earnings of $2.33 per share during the three-month stretch ending in October. That top line was up 11.1% year over year, driving a 12% increase in profits. Revenue rolled in better than the $9.42 billion consensus, although its income fell short of the $2.54 per share analysts were anticipating.
Source Fool.com
