Key statistics

Is DG a good stock to buy in 2026?

Dollar General (DG) stock presents a compelling case for potential investors, boasting a significantly lower P/E ratio of 16.65x compared to its sector average of 48.4x. Furthermore, our discounted cash flow (DCF) analysis suggests a substantial undervaluation, with a fair value of $336.77, representing a 194.5% upside. This fundamental strength is echoed by analyst sentiment, with 54.0% recommending a Buy rating, making the question ‘is DG a good stock’ worth serious consideration for value-oriented portfolios. Please note this is not investment advice.

2026 DG price scenarios

Based on analyst consensus of $145 from 50 analysts. Not a prediction by Alert Invest.

About Dollar General Corporation (DG)

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, Midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine. The company’s consumable products also comprise snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, including over-the-counter medicines and personal care products, such as soaps, body washes, shampoos, cosmetics, and dental hygiene and foot care products; pet supplies and pet food; and tobacco products.

Under the leadership of CEO Todd J. Vasos, Dollar General Corporation leverages its vast network of stores, primarily serving rural and suburban communities across the southern, southwestern, Midwestern, and eastern United States. With a substantial workforce of 194,200 employees, the company maintains a distinctive operational strength by offering everyday essentials at competitive price points, catering to value-conscious consumers. This focus on convenience and affordability in often underserved markets provides DG stock with a resilient demand base. The company’s business model is centered on providing a broad assortment of consumable products, making it a staple for many households seeking affordable goods.

DG competitive moat and business analysis

Dollar General operates in a highly competitive retail landscape, yet it carves out a significant competitive advantage primarily through its extensive geographic reach into underserved markets and its strong value proposition. While its net margin of 3.54% indicates a lean operational structure, typical for the discount retail sector, the focus is on high volume and efficient inventory turnover. Unfortunately, specific Return on Equity (ROE) and Return on Invested Capital (ROIC) figures are not explicitly available in the provided data, so we note them as N/A. However, the company’s ability to consistently deliver essential goods at low prices is a significant barrier to entry for many competitors and a key driver of DG stock performance. This strong position helps cement its local market presence and customer loyalty, contributing to its sustained revenue.

For fiscal year 2025, Dollar General reported total revenue of $42.72 billion. The provided data indicates that this revenue is consolidated under the single primary segment of ‘Dollar General Corporation’ for the reported period ending 2026-01-30. There are no detailed breakdowns into distinct product categories or specific geographic segments beyond its broad U.S. presence available. This implies that the company’s operations are largely integrated across its discount store model, focusing on a consistent offering throughout its network. The steady growth of 5.2% in revenue year-over-year suggests effective market penetration and stable demand for its product mix.

Dollar General’s moat is centered on its cost leadership and widespread distribution, particularly in areas where larger retailers may not operate. The 5.2% year-over-year revenue growth indicates that the company continues to expand its reach and capture market share. While a specific transcript quote from CEO Todd J. Vasos is not available to detail the strategic outlook, the company’s ongoing success in enhancing its existing store portfolio and opening new locations underscores its commitment to reinforcing this moat. This expansion strategy, coupled with a focus on essential goods, helps Dollar General maintain its resilience even during economic fluctuations, securing its position as a key player in the Consumer Defensive sector.

When evaluating DG stock, it’s crucial to compare its performance and strategy against key peers in the Consumer Defensive sector. Dollar General’s business model, focused on small-format stores in rural and suburban areas, differentiates it from bulk retailers like BJ’s Wholesale Club (DG vs BJ) or agricultural product powerhouses like Bunge Global SA (DG vs BG). While Church & Dwight Co., Inc. (DG vs CHD) also operates in consumer staples, its brand-focused approach differs significantly from Dollar General’s general merchandise discount strategy. Each peer offers a unique value proposition, and understanding these distinctions is vital for a comprehensive DG valuation. Analyzing these comparisons can shed light on relative strengths, growth prospects, and potential areas of competitive pressure for DG.

Dollar General Corporation analyst rating

Based on 50 analysts. 54.0% rate DG Buy or Strong Buy.

With 54.0% of analysts rating DG stock as Buy or Strong Buy, this sentiment is generally considered strong within the Consumer Defensive sector. While not an overwhelming majority, it indicates a solid conviction in the company’s future performance, supported by a consensus price target of $145, offering a notable 26.8% upside. Investors looking at ‘is DG a good stock’ should factor in this positive analyst outlook.

Is DG undervalued or overvalued?

When assessing DG valuation, multiple metrics suggest the stock is currently undervalued. With a P/E ratio of 16.65x, Dollar General trades at a significant discount compared to the Discount Stores sector average P/E of 48.4x, suggesting a potentially attractive entry point. This substantial discount is a key indicator for investors asking ‘is DG a good stock’ from a value perspective.

Furthermore, our Discounted Cash Flow (DCF) model calculates a fair value of $336.77, representing a robust 194.5% upside from the current price. While the Price-to-Book (P/B) ratio of 2.96x appears fair, the Price-to-Sales (P/S) ratio of 0.59x also signals that the company’s revenue generation is not being fully priced in by the market. These valuation signals collectively suggest that DG stock may be trading below its intrinsic worth.

DG financial health & key metrics

For value investors considering DG stock, the current metrics paint a nuanced picture. The P/E ratio of 16.65x against a sector average of 48.4x strongly indicates that Dollar General is trading at a significant discount, reinforcing the ‘undervalued’ argument. The robust Free Cash Flow (FCF) yield of 12.24% demonstrates strong cash generation, which is a positive sign for financial health despite a higher Debt-to-Equity ratio of 1.85x. While the net margin of 3.54% is relatively low, it is characteristic of high-volume discount retail. The notable DCF fair value of $336.77, representing a 194.5% upside, further supports the view that DG valuation is currently favorable for long-term oriented investors, balancing the concern of higher debt with strong cash flow and undervaluation.

Dollar General Corporation earnings history & next report

Dollar General Corporation reported EPS of $1.93, beating estimates by 16.27%. Next earnings: 2026-06-02 with EPS estimate of $1.9.

Dollar General Corporation recently exceeded expectations by reporting an EPS of $1.93, surpassing estimates by 16.27%, a positive signal for DG stock performance. Investors should closely watch the upcoming earnings report on 2026-06-02, where the EPS estimate stands at $1.9. Key areas to observe include management’s commentary on consumer spending trends, particularly among lower-income demographics, and updates on store expansion and operational efficiency initiatives. Any insights into supply chain improvements or efforts to mitigate inflationary pressures will be crucial in assessing future profitability and the overall DG valuation outlook.

DG daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

DG insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent DG analyst rating changes

Dollar General Corporation stock news today

How does DG compare to its peers?

Understanding Dollar General’s position relative to its competitors is essential for a comprehensive DG valuation and to answer ‘is DG a good stock’ for diversification. While all operate within the broader Consumer Defensive sector, their specific business models and market focuses can vary significantly, offering different risk-reward profiles. Let’s compare DG with some relevant peers: Bunge Global SA (BG), BJ’s Wholesale Club Holdings Inc. (BJ), and Church & Dwight Co., Inc. (CHD).

FAQ — Dollar General Corporation (DG) stock