Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine. The company's consumable products also comprise snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, including over-the-counter medicines and personal care products, such as soaps, body washes, shampoos, cosmetics, and dental hygiene and foot care products; pet supplies and pet food; and tobacco products. In addition, it offers seasonal products comprising holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, and automotive and home office supplies; and home products that include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, and bed and bath soft goods. Further, the company provides apparel, which comprise basic items for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.

Dollar General Corporation

Fintel reports that on October 27, 2025, JP Morgan maintained coverage of Dollar General (NYSE:DG) with a Neutral recommendation.
Analyst Price Forecast Suggests 21.91% Upside
As of September 30, 2025, the average one-year price target for Dollar General is $124.33/share. The forecasts range from a low of $80.80 to a high of $145.95. The average price target represents an increase of 21.91% from its latest reported closing price of $101.99 / share.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Dollar General is 44,463MM, an increase of 6.75%. The projected annual non-GAAP EPS is 15.58, a decrease of 2.13% from the prior forecast.
What is the Fund Sentiment?
There are 1,738 funds or institutions reporting positions in Dollar General. This is an increase of 125 owner(s) or 7.75% in the last quarter. Average portfolio weight of all funds dedicated to DG is 0.29%, an increase of 9.82%. Total shares owned by institutions decreased in the last three months by 1.48% to 236,724K shares. The put/call ratio of DG is 0.90, indicating a bullish outlook.
What are Other Shareholders Doing?
Pzena Investment Management holds 11,849K shares representing 5.38% ownership of the company. In its prior filing, the firm reported owning 12,771K shares , representing a decrease of 7.78%. The firm increased its portfolio allocation in DG by 10.91% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,082K shares representing 3.22% ownership of the company. In its prior filing, the firm reported owning 6,961K shares , representing an increase of 1.71%. The firm increased its portfolio allocation in DG by 18.07% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 6,243K shares representing 2.84% ownership of the company. In its prior filing, the firm reported owning 6,113K shares , representing an increase of 2.08%. The firm increased its portfolio allocation in DG by 18.02% over the last quarter.
Capital International Investors holds 6,014K shares representing 2.73% ownership of the company. In its prior filing, the firm reported owning 9,342K shares , representing a decrease of 55.33%. The firm decreased its portfolio allocation in DG by 26.65% over the last quarter.
First Eagle Investment Management holds 5,976K shares representing 2.72% ownership of the company. In its prior filing, the firm reported owning 6,070K shares , representing a decrease of 1.57%. The firm increased its portfolio allocation in DG by 20.50% over the last quarter.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

JP Morgan Maintains Dollar General (DG) Neutral Recommendation

Key Points
Studies show that dividend-growing stocks tend to outperform the broader market over extended periods while exhibiting lower volatility.
Companies that consistently increase their dividend payments tend to have stable business models and strong cash management.
Look for stocks of companies that have steady cash flows and a long history of rewarding shareholders.
Investing in the stock market is an excellent way to build long-term wealth. Key to this is patience, discipline, and owning stocks in quality businesses.
Businesses that consistently reward shareholders with steady dividend payments can be an excellent choice for those seeking a blend of income and growth. The ability to pay and consistently raise dividends over time is a sign of financial strength and stability, not just short-term success.
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According to a study by Hartford Funds in conjunction with Ned Davis Research, over the past five decades, dividend growers tend to outperform non-dividend growers while experiencing less volatility along the way. If you're interested in dividend stocks, here are seven solid investments you can buy and hold for the next 20 years and beyond.
1. Coca-Cola
Coca-Cola's (NYSE: KO) appeal stems from its unmatched global brand portfolio, vast distribution network, and high-margin beverage concentrate model. Operating in over 200 countries, Coca-Cola collects steady cash flows while bottlers shoulder most capital costs. Its consistent pricing power and scale buffer against inflation and currency swings.
Coca-Cola has raised its dividend payment every year for 63 consecutive years, with annual increases reflecting steady free-cash-flow generation and disciplined capital management. Its strategic expansion into low-sugar drinks, coffees, and energy beverages broadens growth beyond soda while maintaining brand dominance.
2. Procter & Gamble
Procter & Gamble (NYSE: PG) may be the gold standard of dividend dependability. The company has made more than 135 years of uninterrupted payments and has grown its dividend payment for 69 consecutive years -- one of the longest streaks among today's Dividend Kings.
Procter & Gamble's strength comes from its portfolio of trusted consumer brands, which includes Tide, Pampers, Gillette, and Crest. These strong brands deliver consistent, recession-resistant cash flow. With its scale and global reach, brand pricing power enables steady margins even amid inflation. The company converts over 90% of earnings to free cash flow, funding dividends and buybacks without straining its balance sheet.
3. Enterprise Products Partners
Enterprise Products Partners (NYSE: EPD) is a master limited partnership operating a highly stable fee-based energy infrastructure network in North America. It operates over 50,000 miles of pipelines and over 300 million barrels of liquid storage, along with processing assets that span crude oil, natural gas, and natural gas liquids (NGLs).
As a midstream operator, Enterprise is more insulated from commodity-price swings. That's because most of its revenue comes from fee-based contracts tied to the volume of oil, gas, and natural gas liquids moved through its pipelines, not their market price. Approximately 90% of its contracts include an escalation provision to mitigate the impact of inflation on cash flow and distributions.
Enterprise Products Partners has grown its distribution for 26 consecutive years. Given its stable, fee-based model and growth in domestic oil and gas production, along with its 7% yield, Enterprise is a solid dividend stock for investors.
4. ExxonMobil
ExxonMobil (NYSE: XOM) operates as an integrated oil and gas company. In other words, it engages in activities across the entire value chain, including exploring and producing crude oil and natural gas (upstream operations) and refining crude oil into fuel, lubricants, and other petroleum-based products (downstream operations).
Operating across the value chain enables ExxonMobil to weather volatile oil prices and deliver for investors. This diverse business model is a big reason why the company has grown its dividend payout to investors for 42 consecutive years.
Exxon's expansion in liquefied natural gas (LNG), Guyana oil production, and low-carbon technologies such as carbon capture and hydrogen add future cash-flow resiliency.
5. Realty Income
Realty Income (NYSE: O), also known as "The Monthly Dividend Company," is a diversified real estate investment trust (REIT) with a diversified portfolio of more than 15,000 properties leased to blue chip tenants like Walgreens, Dollar General, and FedEx on long-term, triple-net leases (NNN).
By utilizing triple net leases, it shifts most expenses, such as taxes, insurance, and maintenance, to tenants to ensure a more predictable cash flow. This has enabled the company to raise its dividend payment every year since 1994.
With consistent occupancy rates near 99% and disciplined capital management, Realty Income offers investors a combination of dependable monthly income and steady long-term growth.
6. Aflac
Aflac (NYSE: AFL) offers life insurance and supplemental insurance, providing its customers with coverage that traditional health insurers typically do not cover. Its strength as a steady dividend payer comes from its conservative underwriting and a strong market position in both the U.S. and Japan.
The company has a strong brand and a long history of profitability, fueling its dividend, which it has grown consistently for over 42 years. The company's focus on high-return insurance lines and disciplined cost control provides it with resilience through economic cycles.
7. Chubb
Chubb (NYSE: CB) provides an array of insurance policies, including commercial and consumer property and casualty (P&C), personal accident, supplemental health, life insurance, and reinsurance. The company is a major player in the industry, with operations spanning 54 countries.
Chubb's strength lies in underwriting discipline. With policies spanning a wide array of risk types, it's vital that Chubb accurately assesses its risks and prices its policies accordingly. Its combined ratio, a key measure of profitability in the insurance industry, consistently beats the industry average, showing strong risk selection and cost control.
With more than three decades of uninterrupted dividend increases and a payout ratio of 33%, Chubb's dividend is both sustainable and positioned for continued growth.
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Courtney Carlsen has positions in ExxonMobil. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Enterprise Products Partners and FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

7 Dividend Stocks to Hold for the Next 20 Years

Key Points
Realty Income has increased its dividend 132 times and paid a monthly payment for more than 50 years.
The company outperforms the real estate sector and is a reliable income stream.
This is an uncertain world and there are very few sure things. As Ben Franklin once observed, "nothing is certain except death and taxes." But I think investors can almost add a third thing to that item -- the trusty real estate dividend stock Realty Income (NYSE: O) and its ability to keep paying investors, no matter what the market looks like.
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Realty Income is perhaps the most reliable dividend stock you can find. And it's a well-deserved mantle. Realty Income just declared its 664th consecutive monthly dividend since the company was founded in 1969 -- a streak that goes back more than 55 years. The company has also increased its dividend 132 times in that period, giving Realty Income shareholders a rare blend of growth and income.
This California-based real estate investment trust (REIT), is a no-brainer dividend stock to buy, and is a perfect investment for anyone looking to build their dividend portfolio over a long period of time.
About Realty Income
Realty Income is based in California, but it has a massive presence. The company has 15,600 commercial properties, located in every U.S. state and much of Europe. Realty Income's customers represent 91 separate industries and include more than 1,600 clients.
And most importantly, the company's portfolio has an occupancy rate of 98.5% -- meaning that Realty Income is assured of a consistent revenue stream. That's how it can afford to pay a consistent, reliable monthly dividend. Industries the company leases property to include grocery stores, convenience stores, home improvement stores, dollar stores, restaurants, drug stores, health and fitness centers, and more.
The company also diversifies its portfolio, which means a catastrophic failure in an industry or by a single business won't hurt its operations. Convenience store chain 7-Eleven is the biggest tenant for Realty Income, and even then it's only a 3.4% weighting.
Top 10 Clients
Portfolio Weighting
7-Eleven
3.4%
Dollar General
3.2%
Walgreens
3.2%
Dollar Tree
2.9%
Life Time Fitness
2.1%
EG Group Limited
2.1%
Wynn Resorts
2%
B&Q
2%
FedEx
1.8%
Asda
1.6%
Realty Income stock performance
Unsurprisingly, real estate stocks haven't done well for much of the year. The S&P 500 real estate sector as a whole is up only 4%, thanks to the weak housing market and high interest rates that make borrowing more expensive. But Realty Income has been able to shake off those pressures. The stock is up 11% on the year, and when you calculate the total return of reinvesting dividend payments, the return is more than 15%.
The company recorded $1.41 billion in revenue in the second quarter, up from $1.34 billion a year ago. Income was down, however, thanks to borrowing costs -- the company recorded $196.9 million and $0.22 per share versus $256.8 million and $0.29 per share a year ago.
Realty Income lowered its full-year guidance, with net income now expected to be $1.29 to $1.33 per share, from previous guidance of $1.40 to $1.46 per share.
The case for Realty Income
There's nothing flashy about this stock. But that's fine -- not everything in your portfolio needs to be a shiny new toy. Realty Income's strength comes with its consistency and long-term growth window.
An investment 10 years ago in Realty Income would give you $20,270 today, assuming that you reinvested all those dividends back into your stock. Had you pocketed the money, you'd still have $12,880 -- which all goes to show the power of compound interest.
And remember, because Realty Income is a REIT, it's required by law to disburse 90% of its profits back to shareholders (the current yield is 5.4%). Because it's a monthly payout instead of a quarterly check, investors get the proceeds quicker, and those funds can work for them rather than working for Realty Income.
If you are an income investor, you really can't beat Realty Income for its business plan, diversification, and combination of growth and income. If you are a patient investor with a long-term view, Realty Income is a perfect dividend stock.
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Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why This California-Based Company Could Reward Patient Investors

For Immediate Release
Chicago, IL – October 17, 2025 – Today, Zacks Equity Research discusses Costco Wholesale Corp. COST, The TJX Companies, Inc. TJX, Dollar General Corp. DG and Dollar Tree, Inc. DLTR.
Industry: Discount Retail
Link: https://www.zacks.com/commentary/2769932/costco-3-more-retail-discount-stocks-to-watch-this-holiday-season
The Retail – Discount Stores industry remains a strong pillar of the broader retail sector, benefiting from its focus on value, efficiency and consumer accessibility. Even as households face ongoing inflationary pressures and shifting spending patterns, discount retailers continue to attract steady foot traffic by offering competitive pricing, compelling assortments and convenient store formats.
Their ability to blend affordability with quality — spanning essentials, discretionary goods and private labels — has helped capture demand across income segments. Meanwhile, strategic investments in supply chain efficiency, store remodels and technology are enhancing productivity and customer experience, supporting both top-line growth and margin improvement.
Industry players are also sharpening their digital capabilities, integrating e-commerce with flexible fulfillment models. Loyalty programs, data-driven merchandising and disciplined inventory management remain key levers. As shoppers continue to seek value without compromising on convenience, companies with strong brand equity, scale advantages and operational discipline are well-positioned to thrive. Within this context, Costco Wholesale Corp., The TJX Companies, Inc., Dollar General Corp. and Dollar Tree, Inc. stand out as leading names in the Retail–Discount Stores industry.
About the Industry
The Retail – Discount Stores industry is a significant segment within the retail sector that caters to price-conscious consumers seeking value-for-money products. These stores specialize in offering a wide range of merchandise, including groceries, household items, apparel, electronics, cleaning products, pet supplies and more, at discounted prices compared to traditional retail outlets.
Discount stores operate on a low-cost business model, focusing on cost-efficient operations, bulk purchasing and streamlined supply chains to offer competitive pricing. These stores often carry both national and private-label brands, providing a mix of products to cater to a diverse customer base. The Retail – Discount Stores industry has shown resilience, even during economic downturns, as consumers tend to prioritize value-oriented shopping.
4 Key Industry Trends to Watch
Consumers’ Willingness to Spend: The Retail–Miscellaneous industry is closely tied to consumers’ purchasing power. U.S. retail sales rose 0.6% in August, according to the U.S. Department of Commerce, indicating resilient consumer spending. Supporting this trend, the Federal Reserve’s recent interest rate cuts have lowered borrowing costs, giving consumers more flexibility to spend on discretionary items and fueling demand across the sector.
Moreover, with the holiday season approaching, retailers can expect a further boost in demand as shoppers increase spending on gifts, fashion and seasonal apparel, creating an opportunity for stronger sales and revenue growth heading into year-end. According to Deloitte, U.S. holiday retail sales are projected to rise between 2.9% and 3.4% during the November-January period.
Shoppers Continue Seeking Better Bargains: Consumers are increasingly seeking better bargains, prompting industry players to sharpen their focus on affordability and value. Rising prices and stretched household budgets are driving shoppers — especially in low-to-middle-income brackets — to gravitate toward discount chains that combine convenience with competitive pricing.
To meet this demand, retailers are innovating with compelling assortments, promotional pricing and enhanced digital engagement. Discount retailers are well-positioned to benefit from this “trade-down” effect, as households shift from premium retailers without compromising on quality. The appeal of everyday low pricing and curated private-label assortments continues to attract budget-conscious.
Omnichannel Capabilities Enhance Customer Reach: With evolving shopping behaviors, discount retailers are increasingly blending physical and digital channels to serve customers seamlessly. Companies are channeling resources toward digital platforms, optimizing store fleets, and strengthening supply chains to support faster and more flexible fulfillment. Initiatives such as same-day delivery, buy-online-pickup-in-store, and contactless payment options have enhanced convenience and consumer satisfaction.
At the same time, retailers are modernizing stores through renovations, mobile point-of-sale systems, and improved checkout experiences to keep brick-and-mortar locations relevant. By aligning product assortments with consumer preferences and leveraging data-driven insights, industry players are replenishing shelves with in-demand merchandise.
Margin Discipline Key to Defending Profitability: Competition within the discount retail space remains intense, as companies vie for share through pricing, product variety, and faster go-to-market strategies. The growing influence of e-commerce has further heightened the need for digital investments and robust delivery networks.
While these initiatives are crucial for sustaining sales momentum, they also come with elevated fulfillment, marketing, and store-related costs that weigh on margins. To counter these pressures, retailers are streamlining operations, optimizing supply chains, and implementing disciplined pricing strategies. Ongoing cost-control measures and operational efficiencies will be vital for protecting profitability amid persistent competition.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Retail – Discount Stores industry is housed within the broader Zacks Retail – Wholesale sector. The industry currently carries a Zacks Industry Rank #26, which places it in the top 11% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.
Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Since the beginning of June 2025, the industry’s earnings estimate has increased approximately 6%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Broader Market
The Zacks Retail – Discount Stores industry has underperformed the broader Retail – Wholesale sector and the Zacks S&P 500 composite over the past year.
Stocks in this industry have collectively advanced 6.6%. Meanwhile, the Zacks Retail – Wholesale sector has risen 10.9% and the S&P 500 has rallied 16% in the said time frame.
Industry's Current Valuation
Based on a forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing retail stocks, the industry is currently trading at 30.3 compared with the S&P 500’s 23.26 and the sector’s 24.58.
Over the last five years, the industry has traded as high as 33.77X and as low as 28.73X, with the median being 31.47X.
4 Retail Discount Store Stocks to Keep a Close Eye On
TJX Companies: It continues to demonstrate exceptional execution of its off-price retail model, driving strong comp sales and margin gains across all divisions. Its flexible global sourcing, broad customer appeal, and deep vendor relationships provide access to high-quality branded merchandise at compelling values. The company’s ability to consistently capture market share while maintaining profitability reflects the strength of its buying organization, operational discipline, and global growth runway. With a resilient business model and proven execution, TJX is well-positioned for sustained expansion and long-term shareholder value creation.
The Zacks Consensus Estimate for TJX Companies’ current financial-year sales and earnings per share (EPS) suggests growth of 7% and 8.9%, respectively, from the year-ago reported figure. TJX has a trailing four-quarter earnings surprise of 5.4%, on average. Shares of this Zacks Rank #2 (Buy) company have advanced 23.6% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dollar General: The company’s focus on value, convenience, and disciplined execution continues to drive broad-based sales and market share gains across consumable and non-consumable categories. Strategic initiatives like Project Elevate remodels, digital expansion through delivery partnerships, and the growth of DG Media Network are enhancing customer engagement and productivity. Strong inventory management and margin improvement underscore operational strength and balance sheet discipline. With its vast store network and growing digital reach, Dollar General is positioned to deliver steady growth.
The Zacks Consensus Estimate for Dollar General’s current financial-year sales and EPS suggests growth of 4.7% and 3.6%, respectively, from the year-ago reported figure. DG has a trailing four-quarter earnings surprise of 11.3%, on average. Shares of this Zacks Rank #2 company have surged 29.9% in the past year.
Dollar Tree: Following the Family Dollar divestiture, Dollar Tree has sharpened its focus on the core brand, leveraging its expanded multi-price assortment to attract a broader, higher-income customer base while reinforcing its value leadership. The company’s agile pricing strategy, strong execution, and cost-mitigation levers are sustaining margins amid tariff pressure. Store conversions, real estate expansion and digital initiatives are strengthening customer engagement and operational efficiency. With its resilient model, strengthened balance sheet and clear strategic priorities, Dollar Tree is poised for sustained growth.
The Zacks Consensus Estimate for Dollar Tree’s current financial-year earnings suggests growth of 8.2% from the year-ago reported figure. DLTR has a trailing four-quarter earnings surprise of 27.5%, on average. Shares of this Zacks Rank #2 company have rallied 41.5% in the past year.
Costco: Its membership-based model continues to strengthen its competitive edge by fostering customer loyalty and ensuring stable revenues. Its efficient supply chain, disciplined cost management, and carefully selected product mix reinforce Costco’s reputation for quality and value, maintaining consistent store traffic and sales growth. The company’s focus on digital improvements and logistics investments is boosting convenience and broadening its omnichannel presence. With a loyal membership base, operational excellence and a flexible merchandising approach, Costco is well-positioned for lasting growth.
Costco has a trailing four-quarter earnings surprise of 0.2%, on average. The Zacks Consensus Estimate for current financial-year revenues and EPS suggests growth of 7.7% and 11.1%, respectively, from the year-ago reported figure. Shares of this Zacks Rank #3 (Hold) company have risen 7.9% in the past year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
5 Stocks Set to Double
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Industry Outlook Highlights Costco Wholesale, TJX Companies, Dollar General and Dollar Tree

The Retail – Discount Stores industry remains a strong pillar of the broader retail sector, benefiting from its focus on value, efficiency and consumer accessibility. Even as households face ongoing inflationary pressures and shifting spending patterns, discount retailers continue to attract steady foot traffic by offering competitive pricing, compelling assortments and convenient store formats. Their ability to blend affordability with quality — spanning essentials, discretionary goods and private labels — has helped capture demand across income segments. Meanwhile, strategic investments in supply chain efficiency, store remodels and technology are enhancing productivity and customer experience, supporting both top-line growth and margin improvement.
Industry players are also sharpening their digital capabilities, integrating e-commerce with flexible fulfillment models. Loyalty programs, data-driven merchandising and disciplined inventory management remain key levers. As shoppers continue to seek value without compromising on convenience, companies with strong brand equity, scale advantages and operational discipline are well-positioned to thrive. Within this context, Costco Wholesale Corporation COST, The TJX Companies, Inc. TJX, Dollar General Corporation DG, and Dollar Tree, Inc. DLTR stand out as leading names in the Retail–Discount Stores industry.
About the Industry
The Retail – Discount Stores industry is a significant segment within the retail sector that caters to price-conscious consumers seeking value-for-money products. These stores specialize in offering a wide range of merchandise, including groceries, household items, apparel, electronics, cleaning products, pet supplies and more, at discounted prices compared to traditional retail outlets. Discount stores operate on a low-cost business model, focusing on cost-efficient operations, bulk purchasing and streamlined supply chains to offer competitive pricing. These stores often carry both national and private-label brands, providing a mix of products to cater to a diverse customer base. The Retail – Discount Stores industry has shown resilience, even during economic downturns, as consumers tend to prioritize value-oriented shopping.
4 Key Industry Trends to Watch
Consumers’ Willingness to Spend: The Retail–Miscellaneous industry is closely tied to consumers’ purchasing power. U.S. retail sales rose 0.6% in August, according to the U.S. Department of Commerce, indicating resilient consumer spending. Supporting this trend, the Federal Reserve’s recent interest rate cuts have lowered borrowing costs, giving consumers more flexibility to spend on discretionary items and fueling demand across the sector. Moreover, with the holiday season approaching, retailers can expect a further boost in demand as shoppers increase spending on gifts, fashion and seasonal apparel, creating an opportunity for stronger sales and revenue growth heading into year-end. According to Deloitte, U.S. holiday retail sales are projected to rise between 2.9% and 3.4% during the November-January period.
Shoppers Continue Seeking Better Bargains: Consumers are increasingly seeking better bargains, prompting industry players to sharpen their focus on affordability and value. Rising prices and stretched household budgets are driving shoppers — especially in low-to-middle-income brackets — to gravitate toward discount chains that combine convenience with competitive pricing. To meet this demand, retailers are innovating with compelling assortments, promotional pricing and enhanced digital engagement. Discount retailers are well-positioned to benefit from this “trade-down” effect, as households shift from premium retailers without compromising on quality. The appeal of everyday low pricing and curated private-label assortments continues to attract budget-conscious.
Omnichannel Capabilities Enhance Customer Reach: With evolving shopping behaviors, discount retailers are increasingly blending physical and digital channels to serve customers seamlessly. Companies are channeling resources toward digital platforms, optimizing store fleets, and strengthening supply chains to support faster and more flexible fulfillment. Initiatives such as same-day delivery, buy-online-pickup-in-store, and contactless payment options have enhanced convenience and consumer satisfaction. At the same time, retailers are modernizing stores through renovations, mobile point-of-sale systems, and improved checkout experiences to keep brick-and-mortar locations relevant. By aligning product assortments with consumer preferences and leveraging data-driven insights, industry players are replenishing shelves with in-demand merchandise.
Margin Discipline Key to Defending Profitability: Competition within the discount retail space remains intense, as companies vie for share through pricing, product variety, and faster go-to-market strategies. The growing influence of e-commerce has further heightened the need for digital investments and robust delivery networks. While these initiatives are crucial for sustaining sales momentum, they also come with elevated fulfillment, marketing, and store-related costs that weigh on margins. To counter these pressures, retailers are streamlining operations, optimizing supply chains, and implementing disciplined pricing strategies. Ongoing cost-control measures and operational efficiencies will be vital for protecting profitability amid persistent competition.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Retail – Discount Stores industry is housed within the broader Zacks Retail – Wholesale sector. The industry currently carries a Zacks Industry Rank #26, which places it in the top 11% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.
Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Since the beginning of June 2025, the industry’s earnings estimate has increased approximately 6%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Broader Market
The Zacks Retail – Discount Stores industry has underperformed the broader Retail – Wholesale sector and the Zacks S&P 500 composite over the past year.
Stocks in this industry have collectively advanced 6.6%. Meanwhile, the Zacks Retail – Wholesale sector has risen 10.9% and the S&P 500 has rallied 16% in the said time frame.
One-Year Price Performance
Industry's Current Valuation
Based on a forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing retail stocks, the industry is currently trading at 30.3 compared with the S&P 500’s 23.26 and the sector’s 24.58.
Over the last five years, the industry has traded as high as 33.77X and as low as 28.73X, with the median being 31.47X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
4 Retail Discount Store Stocks to Keep a Close Eye On
TJX Companies: It continues to demonstrate exceptional execution of its off-price retail model, driving strong comp sales and margin gains across all divisions. Its flexible global sourcing, broad customer appeal, and deep vendor relationships provide access to high-quality branded merchandise at compelling values. The company’s ability to consistently capture market share while maintaining profitability reflects the strength of its buying organization, operational discipline, and global growth runway. With a resilient business model and proven execution, TJX is well-positioned for sustained expansion and long-term shareholder value creation.
The Zacks Consensus Estimate for TJX Companies’ current financial-year sales and earnings per share (EPS) suggests growth of 7% and 8.9%, respectively, from the year-ago reported figure. TJX has a trailing four-quarter earnings surprise of 5.4%, on average. Shares of this Zacks Rank #2 (Buy) company have advanced 23.6% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: TJX
Dollar General: The company’s focus on value, convenience, and disciplined execution continues to drive broad-based sales and market share gains across consumable and non-consumable categories. Strategic initiatives like Project Elevate remodels, digital expansion through delivery partnerships, and the growth of DG Media Network are enhancing customer engagement and productivity. Strong inventory management and margin improvement underscore operational strength and balance sheet discipline. With its vast store network and growing digital reach, Dollar General is positioned to deliver steady growth.
The Zacks Consensus Estimate for Dollar General’s current financial-year sales and EPS suggests growth of 4.7% and 3.6%, respectively, from the year-ago reported figure. DG has a trailing four-quarter earnings surprise of 11.3%, on average. Shares of this Zacks Rank #2 company have surged 29.9% in the past year.
Price and Consensus: DG
Dollar Tree: Following the Family Dollar divestiture, Dollar Tree has sharpened its focus on the core brand, leveraging its expanded multi-price assortment to attract a broader, higher-income customer base while reinforcing its value leadership. The company’s agile pricing strategy, strong execution, and cost-mitigation levers are sustaining margins amid tariff pressure. Store conversions, real estate expansion and digital initiatives are strengthening customer engagement and operational efficiency. With its resilient model, strengthened balance sheet and clear strategic priorities, Dollar Tree is poised for sustained growth.
The Zacks Consensus Estimate for Dollar Tree’s current financial-year earnings suggests growth of 8.2% from the year-ago reported figure. DLTR has a trailing four-quarter earnings surprise of 27.5%, on average. Shares of this Zacks Rank #2 company have rallied 41.5% in the past year.
Price and Consensus: DLTR
Costco: Its membership-based model continues to strengthen its competitive edge by fostering customer loyalty and ensuring stable revenues. Its efficient supply chain, disciplined cost management, and carefully selected product mix reinforce Costco’s reputation for quality and value, maintaining consistent store traffic and sales growth. The company’s focus on digital improvements and logistics investments is boosting convenience and broadening its omnichannel presence. With a loyal membership base, operational excellence and a flexible merchandising approach, Costco is well-positioned for lasting growth.
Costco has a trailing four-quarter earnings surprise of 0.2%, on average. The Zacks Consensus Estimate for current financial-year revenues and EPS suggests growth of 7.7% and 11.1%, respectively, from the year-ago reported figure. Shares of this Zacks Rank #3 (Hold) company have risen 7.9% in the past year.
Price and Consensus: COST
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Costco & 3 More Retail Discount Stocks to Watch This Holiday Season

Investors in Dollar General Corp (Symbol: DG) saw new options become available today, for the December 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DG options chain for the new December 19th contracts and identified one put and one call contract of particular interest.
The put contract at the $90.00 strike price has a current bid of 96 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $90.00, but will also collect the premium, putting the cost basis of the shares at $89.04 (before broker commissions). To an investor already interested in purchasing shares of DG, that could represent an attractive alternative to paying $105.87/share today.
Because the $90.00 strike represents an approximate 15% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 85%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.07% return on the cash commitment, or 6.08% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Dollar General Corp, and highlighting in green where the $90.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $110.00 strike price has a current bid of $4.25. If an investor was to purchase shares of DG stock at the current price level of $105.87/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $110.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.92% if the stock gets called away at the December 19th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DG shares really soar, which is why looking at the trailing twelve month trading history for Dollar General Corp, as well as studying the business fundamentals becomes important. Below is a chart showing DG's trailing twelve month trading history, with the $110.00 strike highlighted in red:
Considering the fact that the $110.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 55%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.01% boost of extra return to the investor, or 22.88% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 40%, while the implied volatility in the call contract example is 44%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $105.87) to be 34%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

DG December 19th Options Begin Trading

Investors looking for stocks in the Retail - Discount Stores sector might want to consider either Dollar General (DG) or Ross Stores (ROST). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Dollar General and Ross Stores are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DG is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DG currently has a forward P/E ratio of 16.61, while ROST has a forward P/E of 25.02. We also note that DG has a PEG ratio of 2.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ROST currently has a PEG ratio of 2.97.
Another notable valuation metric for DG is its P/B ratio of 2.8. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ROST has a P/B of 8.78.
Based on these metrics and many more, DG holds a Value grade of A, while ROST has a Value grade of C.
DG stands above ROST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DG is the superior value option right now.
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DG or ROST: Which Is the Better Value Stock Right Now?

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. AutoNation (AN) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
AutoNation is one of 196 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. AutoNation is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AN's full-year earnings has moved 5.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that AN has returned about 27.1% since the start of the calendar year. Meanwhile, stocks in the Retail-Wholesale group have gained about 5.1% on average. This shows that AutoNation is outperforming its peers so far this year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Dollar General (DG). The stock has returned 34.4% year-to-date.
For Dollar General, the consensus EPS estimate for the current year has increased 6.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, AutoNation belongs to the Automotive - Retail and Whole Sales industry, a group that includes 10 individual companies and currently sits at #18 in the Zacks Industry Rank. On average, this group has gained an average of 1.2% so far this year, meaning that AN is performing better in terms of year-to-date returns.
Dollar General, however, belongs to the Retail - Discount Stores industry. Currently, this 8-stock industry is ranked #32. The industry has moved +3.5% so far this year.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on AutoNation and Dollar General as they attempt to continue their solid performance.
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AutoNation, Inc. (AN) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Are Retail-Wholesale Stocks Lagging AutoNation (AN) This Year?

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Boot Barn?
The final step today is to look at a stock that meets our ESP qualifications. Boot Barn (BOOT) earns a #1 (Strong Buy) seven days from its next quarterly earnings release on August 7, 2024, and its Most Accurate Estimate comes in at $1.12 a share.
BOOT has an Earnings ESP figure of +6.19%, which, as explained above, is calculated by taking the percentage difference between the $1.12 Most Accurate Estimate and the Zacks Consensus Estimate of $1.05. Boot Barn is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
BOOT is part of a big group of Retail and Wholesale stocks that boast a positive ESP, and investors may want to take a look at Wayfair (W) as well.
Wayfair is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 1, 2024. W's Most Accurate Estimate sits at $0.71 a share one day from its next earnings release.
The Zacks Consensus Estimate for Wayfair is $0.50, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +43.43%.
BOOT and W's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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Want Better Returns? Don?t Ignore These 2 Retail and Wholesale Stocks Set to Beat Earnings

Dollar General (DG) closed at $101.87 in the latest trading session, marking a +2.67% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.56%. Meanwhile, the Dow gained 1.29%, and the Nasdaq, a tech-heavy index, added 2.21%.
The stock of discount retailer has fallen by 4.96% in the past month, leading the Retail-Wholesale sector's loss of 5.02% and undershooting the S&P 500's gain of 0.41%.
The upcoming earnings release of Dollar General will be of great interest to investors. In that report, analysts expect Dollar General to post earnings of $0.95 per share. This would mark year-over-year growth of 6.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.62 billion, up 4.25% from the year-ago period.
DG's full-year Zacks Consensus Estimates are calling for earnings of $6.13 per share and revenue of $42.5 billion. These results would represent year-over-year changes of +3.55% and +4.66%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Dollar General. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. Dollar General currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Dollar General has a Forward P/E ratio of 16.18 right now. For comparison, its industry has an average Forward P/E of 22.31, which means Dollar General is trading at a discount to the group.
One should further note that DG currently holds a PEG ratio of 2.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.49 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 28% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Dollar General Corporation

Price history and volume

Shares 360

Investment risk — medium

Investment potential — high

AI Factors

stagflation

Consumer Spending

Recession Risk

Inflation

Consumer Confidence

Food Supply

Interest Rates

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