Dollar General Sales Are Soaring. Is the Discount Retailer's Stock a Buy in 2026?
Most investors fear lingering inflation will chip away at Dollar General's foot traffic, which has defied the odds so far.
Dollar General Sales Are Soaring. Is the Discount Retailer's Stock a Buy in 2026?
Overview
Given the stock's 30% pullback since late February, it would be easy to presume Dollar General's (NYSE: DG) core customers are struggling under the weight of inflation. Indeed, the Bureau of Labor Statistics says the annualized pace of consumer prices grew to 4.2% in May, largely thanks to the soaring cost of food and gasoline.
Yet, the discount retailer is doing surprisingly well, reporting respectable same-store sales growth of 2% for the three months ending in early May and companywide revenue growth of 3.4% year over year. Earnings grew even more thanks to curbed inventory costs, and the company's calling for even faster top- and bottom-line growth than for the full fiscal year.
Details
What gives?
Source
Originally published at www.fool.com.
