KeyCorp Has Optimistic Outlook of Dollar General Q3 Earnings

Key Points

• KeyCorp raised its Q3 2027 earnings estimate for Dollar General to $1.40 per share from $1.39, while keeping a Sector Weight rating on the stock. It also forecast Q4 2027 earnings of $2.00 per share.
• Dollar General recently beat quarterly earnings expectations, reporting $2.00 EPS versus $1.89 expected, and revenue rose 3.4% year over year to $10.79 billion. The company also lifted its FY 2026 EPS guidance to $7.20-$7.45.
• Analyst sentiment remains mixed but generally cautious: several firms maintained buy or outperform views, yet the overall consensus rating is still Hold with a $134.15 price target. The stock was trading at $105.10, below its recent moving averages and 52-week high.

Dollar General Corporation (NYSE:DG - Free Report) - Equities researchers at KeyCorp increased their Q3 2027 earnings estimates for shares of Dollar General in a report issued on Tuesday, June 2nd. KeyCorp analyst B. Thomas now anticipates that the company will post earnings of $1.40 per share for the quarter, up from their previous forecast of $1.39. KeyCorp has a "Sector Weight" rating on the stock. The consensus estimate for Dollar General's current full-year earnings is $7.28 per share. KeyCorp also issued estimates for Dollar General's Q4 2027 earnings at $2.00 EPS.

DG has been the topic of several other research reports. Sanford C. Bernstein reiterated an "outperform" rating and issued a $149.00 price target on shares of Dollar General in a research note on Wednesday. Loop Capital boosted their price target on shares of Dollar General from $110.00 to $115.00 and gave the stock a "hold" rating in a research note on Wednesday. UBS Group reiterated a "buy" rating on shares of Dollar General in a research note on Wednesday, May 27th. Raymond James Financial restated an "outperform" rating and issued a $145.00 target price on shares of Dollar General in a report on Wednesday. Finally, Barclays restated an "overweight" rating and issued a $148.00 target price on shares of Dollar General in a report on Wednesday. Eleven equities research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Dollar General presently has a consensus rating of "Hold" and a consensus price target of $134.15.

Dollar General Stock Down 1.1%

Shares of DG stock opened at $105.10 on Thursday. The stock has a market cap of $23.15 billion, a P/E ratio of 14.87, a PEG ratio of 1.76 and a beta of 0.26. Dollar General has a 52 week low of $95.11 and a 52 week high of $158.23. The company has a quick ratio of 0.22, a current ratio of 1.17 and a debt-to-equity ratio of 0.52. The company's fifty day simple moving average is $114.46 and its two-hundred day simple moving average is $128.74.

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

Dollar General Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 21st. Stockholders of record on Tuesday, July 7th will be issued a $0.59 dividend. The ex-dividend date is Tuesday, July 7th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 2.2%. Dollar General's payout ratio is 34.45%.

Institutional Trading of Dollar General

A number of large investors have recently made changes to their positions in the business. DV Trading LLC bought a new stake in shares of Dollar General in the 1st quarter worth about $249,000. NewEdge Advisors LLC grew its holdings in Dollar General by 14.3% during the 1st quarter. NewEdge Advisors LLC now owns 71,721 shares of the company's stock valued at $8,515,000 after purchasing an additional 8,996 shares during the last quarter. Keel Point LLC bought a new position in Dollar General during the 1st quarter valued at about $393,000. Summitry LLC grew its holdings in Dollar General by 5.5% during the 1st quarter. Summitry LLC now owns 8,654 shares of the company's stock valued at $1,027,000 after purchasing an additional 454 shares during the last quarter. Finally, Vestor Capital LLC grew its holdings in Dollar General by 663.8% during the 1st quarter. Vestor Capital LLC now owns 28,979 shares of the company's stock valued at $3,441,000 after purchasing an additional 25,185 shares during the last quarter. 91.77% of the stock is currently owned by institutional investors.

Key Dollar General News

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

• Positive Sentiment: Dollar General beat Q1 earnings estimates with EPS of $2.00 versus $1.89 expected, while same-store sales rose 2.0% and net sales increased 3.4%, showing solid customer traffic and margin improvement.
• Positive Sentiment: The company raised its fiscal 2026 profit outlook to $7.20-$7.45 per share and reaffirmed sales growth expectations, signaling management confidence in continued operational improvement and demand for value-priced essentials.
• Positive Sentiment: Several analysts maintained bullish or supportive views after the report, including Jefferies and UBS, which helps offset some of the more cautious rating actions.
• Neutral Sentiment: Most analyst firms trimmed price targets, including Citigroup, Goldman Sachs, BNP Paribas Exane, HSBC, Evercore and Guggenheim, but largely kept neutral/hold-style ratings, suggesting valuation concern more than deteriorating fundamentals.
• Neutral Sentiment: Dollar General also declared a quarterly dividend and highlighted store expansion and inventory discipline, reinforcing a stable longer-term operating strategy.
• Negative Sentiment: The company noted that core customers are under pressure from higher gas prices and reduced SNAP benefits, especially in rural areas, which could weigh on spending patterns later in the year.
• Negative Sentiment: Some commentary pointed to a slight revenue miss and ongoing concerns about the turnaround pace, which may limit the stock’s upside near term despite the earnings beat.

Dollar General Company Profile

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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