KeyCorp Analysts Lift Earnings Estimates for Dollar General

Key Points

• KeyCorp raised its Q2 2027 EPS estimate for Dollar General to $2.00 from $1.97 and also lifted its FY2027 and FY2028 earnings forecasts, while keeping a “Sector Weight” rating on the stock.
• Dollar General recently reported Q1 earnings of $2.00 per share, topping expectations of $1.89, and revenue rose 3.4% year over year to $10.79 billion. The company also raised its FY2026 guidance to $7.20-$7.45 EPS.
• Broker sentiment remains mixed: several firms cut price targets or downgraded the stock, and MarketBeat data shows a consensus rating of Hold with an average target price of $131.27. The shares were trading around $103.49, well below their 200-day average and 52-week high.

Dollar General Corporation (NYSE:DG - Free Report) - Stock analysts at KeyCorp raised their Q2 2027 earnings per share estimates for Dollar General in a report released on Tuesday, June 2nd. KeyCorp analyst B. Thomas now forecasts that the company will earn $2.00 per share for the quarter, up from their previous estimate of $1.97. KeyCorp currently has a "Sector Weight" rating on the stock. The consensus estimate for Dollar General's current full-year earnings is $7.31 per share. KeyCorp also issued estimates for Dollar General's FY2027 earnings at $7.40 EPS and FY2028 earnings at $8.00 EPS.

Dollar General (NYSE:DG - Get Free Report) last posted its earnings results on Tuesday, June 2nd. The company reported $2.00 EPS for the quarter, beating the consensus estimate of $1.89 by $0.11. The company had revenue of $10.79 billion during the quarter, compared to analyst estimates of $10.81 billion. Dollar General had a return on equity of 18.65% and a net margin of 3.63%.The business's revenue was up 3.4% compared to the same quarter last year. During the same period in the prior year, the company earned $1.78 earnings per share. Dollar General has set its FY 2026 guidance at 7.200-7.450 EPS.

A number of other equities research analysts have also recently weighed in on the company. Telsey Advisory Group cut their price target on Dollar General from $140.00 to $125.00 and set a "market perform" rating on the stock in a report on Wednesday. Freedom Capital cut Dollar General from a "strong-buy" rating to a "hold" rating in a report on Tuesday. HSBC cut their price target on Dollar General from $141.00 to $125.00 and set a "hold" rating on the stock in a report on Wednesday. Barclays cut their price target on Dollar General from $151.00 to $148.00 and set an "overweight" rating on the stock in a report on Wednesday. Finally, Gordon Haskett cut Dollar General from a "buy" rating to a "hold" rating and cut their price target for the company from $140.00 to $110.00 in a report on Friday, May 22nd. Ten analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Dollar General has an average rating of "Hold" and a consensus target price of $131.27.

Dollar General Stock Down 1.5%

NYSE:DG opened at $103.49 on Friday. The firm has a market capitalization of $22.83 billion, a PE ratio of 14.64, a price-to-earnings-growth ratio of 1.67 and a beta of 0.26. The stock has a 50 day moving average of $114.17 and a 200-day moving average of $128.73. Dollar General has a 52 week low of $95.11 and a 52 week high of $158.23. The company has a current ratio of 1.17, a quick ratio of 0.22 and a debt-to-equity ratio of 0.52.

Hedge Funds Weigh In On Dollar General

Hedge funds have recently modified their holdings of the company. Calamos Advisors LLC boosted its holdings in Dollar General by 32.9% during the fourth quarter. Calamos Advisors LLC now owns 245,473 shares of the company's stock worth $32,591,000 after buying an additional 60,746 shares in the last quarter. Park Capital Management LLC WI bought a new stake in Dollar General during the fourth quarter worth approximately $1,245,000. Arista Wealth Management LLC bought a new stake in Dollar General during the third quarter worth approximately $351,000. Westpac Banking Corp boosted its holdings in Dollar General by 765.2% during the third quarter. Westpac Banking Corp now owns 9,197 shares of the company's stock worth $951,000 after buying an additional 8,134 shares in the last quarter. Finally, Geode Capital Management LLC boosted its holdings in Dollar General by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 5,707,809 shares of the company's stock worth $754,857,000 after buying an additional 42,936 shares in the last quarter. 91.77% of the stock is currently owned by institutional investors and hedge funds.

Dollar General Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 21st. Stockholders of record on Tuesday, July 7th will be given a dividend of $0.59 per share. The ex-dividend date is Tuesday, July 7th. This represents a $2.36 annualized dividend and a dividend yield of 2.3%. Dollar General's dividend payout ratio (DPR) is 33.38%.

Dollar General News Roundup

Here are the key news stories impacting Dollar General this week:

• Positive Sentiment: Dollar General reported Q1 results that beat earnings expectations, with management pointing to stronger traffic, margin expansion, cost control, and inventory discipline. The company also raised its 2026 earnings outlook, which is helping investors focus on improving fundamentals. Dollar General Q1 Earnings Call Highlights Traffic, Margin Discipline
• Positive Sentiment: One analyst note highlighted that Dollar General is attracting more six-figure-income households and boosted its EPS target, suggesting the retailer may be gaining share with a broader customer base even in a tough consumer environment. Why Walmart and Other Consumer Stocks Aren’t Getting the Gains They Deserve
• Neutral Sentiment: Several brokerages updated their views after the quarter, but the calls were mixed: some raised price targets or earnings estimates, while others cut targets and kept neutral or hold ratings. That suggests analysts see improvement, but not enough to turn uniformly bullish yet.
• Neutral Sentiment: Recent articles also framed DG as a value stock after a prolonged share-price decline, with investors reassessing whether the pullback has created an attractive entry point. This supports the valuation debate but does not by itself change the operating story.
• Negative Sentiment: Despite the solid quarter, Dollar General’s stock has been weighed down by multiple target cuts, including reductions from Citigroup, Goldman Sachs, BNP Paribas, HSBC, Daiwa, Evercore, Guggenheim, Telsey, and others, which may be limiting enthusiasm near term.
• Negative Sentiment: Investor sentiment may also be cautious because the CEO exit is looming, adding an element of leadership uncertainty even as operating performance improves. Dollar General's Q1 Beat Driven By Cost Control As CEO Exit Looms

About Dollar General

Dollar General Corporation is a U.S.-based variety and discount retailer operating a large network of small-format stores that serve primarily rural and suburban communities. The company is publicly traded on the New York Stock Exchange under the ticker DG and is headquartered in the Nashville/Goodlettsville, Tennessee area. Founded in 1939, Dollar General has grown from a regional operation into one of the nation's prominent low-price retailers focused on convenience and value.

Dollar General's stores offer a wide assortment of everyday consumables and household goods, including food and beverage items, cleaning supplies, health and beauty products, paper goods, apparel basics, seasonal merchandise and small household items.

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