Dollar General (DG) is expected to deliver another strong quarter when it reports fiscal Q2 results on Thursday, with comparable-store sales growth of at least 2.5%, Oppenheimer said in a Tuesday note.
The brokerage said the company's top-line momentum should remain supported by management initiatives and trade-in, while Street estimates for a 2.6% increase in comparable-store sales and earnings per share of $2.01 appear achievable.
According to the report, management is expected to reaffirm its fiscal 2026 targets rather than raise them, as higher fuel costs could limit upside. The company maintained its sales outlook last quarter while raising its EPS forecast, partly due to a lower tax rate.
Oppenheimer maintained its outperform rating on the stock with a price target of $150.
Shares of Dollar General were down 1.9% in Tuesday trading.
Price: 123.03, Change: -2.30, Percent Change: -1.84
Comments