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.
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.