A comparison of Dollar General (DG) and Ross Stores (ROST) in the discount retail sector reveals that Dollar General presents a better value opportunity. DG holds a Zacks Rank #1 (Strong Buy) with improving earnings outlook and a Value grade of B, while ROST has a Zacks Rank #2 (Buy) with a Value grade of D. DG's forward P/E of 17.52 and P/B ratio of 3.3 are significantly more attractive than ROST's forward P/E of 26.98 and P/B ratio of 11.21.
DG
Dollar General Corp. · NYSE
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20 latestDollar General (DG), a Zacks Rank #1 Strong Buy, has successfully rebuilt its business after struggling in 2023-2024. The company reported four consecutive quarters of earnings beats averaging 19.1% and raised full-year guidance. With same-store sales growth driven by increased customer traffic and expanding margins, DG shares have advanced 35% over the past year, supported by its unique retail footprint in underserved rural markets.
Dollar General (DG) is highlighted as the Bull of the Day with a Zacks Rank #1 (Strong Buy) following a successful turnaround with four consecutive quarters of earnings beats and 35% share appreciation over the past year. Las Vegas Sands (LVS) is the Bear of the Day with a Zacks Rank #5 (Strong Sell), down 43% year-to-date due to two consecutive earnings misses by ~24% and deteriorating margins in both Singapore and Macao operations. The article also analyzes three energy stocks (Chevron, Diamondback Energy, and APA Corp) positioned to benefit from rising oil prices.
Dollar Tree's multi-price strategy drove Q2 FY26 comparable sales growth of 3.7%, with multi-price penetration reaching 17% of total sales. The company, along with Ross Stores, Dollar General, and Burlington Stores, is leveraging value-oriented retail models to attract customers across income levels. However, merchandise inflation and freight costs remain headwinds.
Dollar General (DG) has been added to the Zacks Rank #1 (Strong Buy) list as of October 3, 2026. The discount retailer has seen 13 analysts revise earnings estimates upward in the last 60 days, with consensus estimates increasing to $7.94 per share. The company is forecasted to achieve 15.9% earnings growth and 4.3% sales growth for fiscal 2027, while outperforming the S&P 500 with a 5.6% gain over four weeks.
Walmart commands a premium valuation of 36.32x forward P/E, exceeding industry averages and peers like Target and Dollar General. While the company benefits from strong e-commerce growth (23% in Q2), expanding higher-margin businesses, and market share gains, near-term challenges including $2 billion in incremental fuel costs, aggressive pricing investments, and margin pressures limit upside. Analysts recommend a cautious approach with a Hold rating, suggesting existing shareholders retain positions while prospective investors await better entry points.
Uber Eats has partnered with Sur La Table to offer premium kitchenware and culinary products for on-demand delivery in as little as 25 minutes. This partnership represents Uber's continued expansion beyond food delivery into broader retail categories, including previous deals with Best Buy, Dollar General, and Dollar Tree. The diversification could increase order frequency, gross bookings, and merchant revenues while strengthening Uber's competitive position in the on-demand retail delivery market.
The Retail-Discount Stores industry is positioned for growth as value-seeking expands across all income groups amid persistent inflation and elevated borrowing costs. Four prominent discount retailers—Ross Stores, Target, Dollar General, and Dollar Tree—are strengthening digital capabilities, improving store experiences, and leveraging AI for operational efficiency. The industry ranks #17 among 250+ Zacks industries with positive earnings outlook, though valuations are elevated at 27.53x forward P/E compared to the S&P 500's 19.99x.
The Retail-Discount Stores industry is well-positioned with a Zacks Industry Rank #17 (top 7%), driven by expanding value-seeking behavior across all income groups and strengthened digital/AI capabilities. Four prominent players—Dollar General, Ross Stores, Target, and Dollar Tree—are capitalizing on this trend through improved store experiences, operational efficiency, and omnichannel integration, though margin pressures from tariffs and freight costs remain a key concern.
A comparison of Dollar General (DG) and Ross Stores (ROST), both holding Zacks Rank #1 (Strong Buy) ratings. While both stocks show positive earnings outlooks, Dollar General emerges as the superior value option based on valuation metrics. DG has a lower forward P/E ratio of 15.53 versus ROST's 25.56, a better PEG ratio of 1.63 versus 1.75, and a significantly lower P/B ratio of 2.93 versus 10.62, earning DG a Value grade of B compared to ROST's D grade.
Dollar General, Bristol-Myers Squibb, and Equinor ASA have received broker rating upgrades despite macroeconomic headwinds. All three stocks show positive earnings growth expectations and improved analyst sentiment, with Equinor showing the strongest projected earnings growth at 120.7% year-over-year.
Target, Walmart, and Dollar General are significantly increasing capital expenditures to strengthen their retail networks and technology capabilities. Target expects $5B in fiscal 2026 capex for new stores, remodels, and technology upgrades, while Walmart raised its capex outlook to 4% of net sales.
Dollar General plans $1.4-$1.5B in capex focused on store growth and supply-chain projects. These investments aim to improve fulfillment speed, inventory reliability, and omnichannel operations.
Costco and Dollar General, two leading U.S. discount retailers, are compared for investment potential. Costco benefits from a strong membership model with 84.1 million paid members and robust digital growth, while Dollar General shows improving same-store sales of 3.5% and successful store remodeling initiatives. Despite Costco's solid fundamentals, Dollar General is rated as the better investment opportunity due to its lower valuation, improving business trends, and greater upside potential.
Dollar General (DG) stock has declined 10.7% over the past four weeks but formed a hammer chart pattern in its last trading session, suggesting potential trend reversal. Rising analyst optimism about future earnings and a Zacks Rank #1 (Strong Buy) rating indicate bullish fundamentals, with earnings estimate revisions trending upward over the last 30 days.
Abercrombie & Fitch (ANF) is highlighted as the Bull of the Day with a Zacks Rank #1 (Strong Buy) rating, driven by strong earnings beats, consecutive quarterly sales growth, and positive estimate revisions. Blue Bird (BLBD) is named the Bear of the Day with a Zacks Rank #5 (Strong Sell) rating due to significant downward earnings estimate revisions for next year, declining from $5.23 to $4.40 per share over 60 days. The article also discusses tariff refund benefits for Walmart, Target, and Dollar General.
Zacks has added five stocks to its Strong Buy list today based on positive earnings estimate revisions over the last 60 days. The stocks include Ecopetrol (oil and gas), Cracker Barrel (restaurant chain), GigaCloud Technology (B2B ecommerce), Dollar General (discount retailer), and Newell Brands (consumer products).
Zacks highlights three Rank #1 stocks with strong income potential: Newell Brands (NWL) with a 5.2% dividend yield and 11.8% earnings estimate increase, Ecopetrol (EC) with a 3.9% dividend yield and 13% earnings estimate increase, and Dollar General (DG) with a 2% dividend yield and 7.6% earnings estimate increase.
Major U.S. retailers Walmart, Target, and Dollar General received substantial tariff refunds in Q2 that strengthened their operating margins and earnings. Walmart received $2.9B in refunds and increased rollbacks to over 11,000 items.
Target recognized $994M in refunds, boosting operating margin to 9.6%. Dollar General reported tariff refunds contributed 81 basis points to gross margin expansion. All three companies strategically reinvested the benefits into customer-focused pricing initiatives and promotions to enhance their competitive positioning.
In a comparison of two major value-focused retailers, Dollar General emerges as the better near-term investment despite Walmart's superior scale and omnichannel capabilities. Dollar General benefits from upward earnings estimate revisions, stronger recent stock performance (+23.1% vs +4.7%), and a notably lower valuation (P/E of 14.92 vs 34.39), while both companies outperform the broader retail sector.
Dollar General received a significant boost from tariff refunds in Q2 fiscal 2026, with refunds contributing 81 basis points to gross margin and 25 cents to EPS. The company reinvested much of the benefit into customer value through promotional activities and lower prices.
Walmart and Target also benefited from tariff refunds, with both companies prioritizing price investments for customers. Dollar General's stock has outperformed its industry over the past three months and carries a Zacks Rank #2 (Buy) rating.
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