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 looks like a mature retailer with stable earnings, but without a clear reason for an aggressive re-rating. On valuation multiples, the company trades below the industry on P/E, P/S, and P/FCF, which supports the valuation; however, P/B is noticeably above the median, meaning the market is already pricing in high-quality capital and business resilience. The recent trend in P/E and P/S has been generally stable or slightly improving, indicating continued investor confidence, but not a strong upward revision. Capital profitability is strong: ROE, ROI, and return on tangible equity are significantly above industry levels and improving year over year, which is the main positive for the valuation. At the same time, ROA is below the median, and net profit margin and operating margin are noticeably weaker than the industry, so asset efficiency and operating leverage are not ideal. Gross margin appears relatively stable and close to the industry norm, indicating acceptable pricing power and purchasing control. Debt burden is moderate: debt/equity is around the median and debt is declining compared with previous periods, which reduces financial risk. Liquidity, on the other hand, is weak on the quick ratio and only moderate on the current ratio, so the buffer in working capital is limited. Revenue, EBITDA, operating profit, and net income are growing year over year, confirming business resilience and supporting the base valuation. Cash flow on a P/FCF basis looks fairly attractive, and cash on hand and shareholders’ equity are increasing, which adds balance sheet strength. Dividend yield has declined compared with previous periods, so the dividend factor is not currently strengthening the investment case. Overall, the fundamentals mostly support the current target price, but due to weak liquidity, margin pressure, and a high P/B valuation, only a moderate conservative downward adjustment is reasonable.

Dollar General Corporation

Сильный индекс, значительно вырос. Быки резко укрепили уверенность в своих позициях.

Strong index, significantly up. Bulls sharply strengthened confidence in their positions.

Сильный индекс, значительно упал. Рынок не поддерживает быков.

Strong index, significantly down. The market does not support the bulls.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

Strong profitability and profit growth support DG, but weak liquidity, margin pressure, and a high P/B limit revaluation potential.

Key Points
Realty Income stock has undergone a considerable sell-off in the last month.
Realty Income’s operations and balance sheet are sensitive to interest rates.
High-yield real estate investment trusts (REITs) aren’t as appealing when 10-year Treasury rates are elevated.
10-year Treasury rates are at 5.28% at the time of this writing -- the highest level since 2002. In September, the Federal Reserve increased rates for the first time since 2023. And investors are concerned that further interest rate hikes could be on the horizon to curb inflation.
Meanwhile, Realty Income (NYSE: O) is down 11.6% over the last month, pushing its dividend yield to 6% -- its highest level in nearly three years. Here's what's driving the sell-off in Realty Income and other real estate investment trusts (REITs) and why Realty Income stands out as a top dividend stock to buy now.
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Realty Income has a 98.8% occupancy rate
Realty Income operates a portfolio of over 15,500 commercial properties under long-term lease agreements in North America and Europe. It has a 98.8% occupancy rate, meaning existing tenants and properties are relatively insulated from rising rates.
Realty Income's bread and butter is single-unit commercial properties -- especially in the retail industry, which makes up 78.3% of annualized contractual rent. Grocery stores, convenience stores, dollar stores, and drugstores make up a combined 30.6% of annualized contractual rent.
Realty Income partners with customers across multiple properties. Dollar General is the largest client, followed by 7-Eleven, Walgreens, Family Dollar, and Life Time Group (formerly known as Life Time Fitness). But no individual client accounts for more than 3.3% of annual contractual rent.
Rising rates increase borrowing costs, making new deals less attractive as the spread between interest rates and property yields narrows. Higher rates also make it more expensive to refinance older debt -- especially because much of that debt was taken on at rates far lower than today.
Realty Income is down 11.6% in 1 month
Realty Income isn't the only REIT under pressure. Many of its peers have also sold off in lockstep with rapidly rising interest rates.
Unlike companies that use excess free cash flow to pay down debt, Realty Income tends to gradually grow its book of business while keeping debt on the balance sheet. The strategy works as its property count and contractual rent grow, but it does make Realty Income more sensitive to rising rates.
Given its heightened exposure to commercial real estate, it makes sense that Realty Income is undergoing a steeper sell-off than REITs with a balanced exposure to industrial and residential customers.
136 dividend increases since 1994
Historically, Realty Income sells off when rates are higher because it's a more challenging operating environment for its business model and because higher Treasury rates are an opportunity cost for dividend stocks. 10-year Treasury notes are typically viewed as risk-free because they are backed by the U.S. government. So 10-year rates at 5.3% compared to Realty Income's 6% yield is a very different setup than if Realty Income were yielding, say, double the risk-free rate.
However, Treasury notes offer a fixed return, whereas the real estate dividend stock offers yield and share price appreciation. It also tends to gradually increase its adjusted funds from operations (AFFO) over time. AFFO measures recurring cash flow that supports dividend payments.
On Sept. 8, Realty Income announced its 136th common stock monthly dividend increase since it was listed on the New York Stock Exchange in 1994. Realty Income pays a monthly dividend, providing a higher-frequency passive-income stream than most stocks that pay quarterly dividends or 10-year Treasury notes, which tend to feature semi-annual interest payments.
To add further security to Realty Income's dividend reliability, the company received an 'A' credit rating from Fitch Ratings in August, making it the fourth U.S. REIT to have at least one 'A' or equivalent rating from either Fitch, Moody's, or S&P Global. The high credit rating is a testament to Realty Income's ability to manage its debt, even though its debt balance has increased substantially in recent years.
A reliable high-yield stock for income investors
Realty Income is a great buy for long-term investors willing to look beyond the present high interest rates. The company has a diversified and high-quality portfolio. Its elite occupancy rate and contract structures create a long runway for steady returns. Realty Income also has an impressive track record of growing its monthly dividend, which is particularly appealing to investors looking to supplement retirement income.
That said, I'd expect the Realty Income sell-off to worsen if interest rates continue rising, so investors should only consider the stock if they're investing with at least a five-year time horizon.
Should you buy stock in Realty Income right now?
Before you buy stock in Realty Income, consider this:
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Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dollar General, Equinix, Life Time Group, Mid-America Apartment Communities, Moody's, Prologis, Realty Income, S&P Global, and Simon Property Group. The Motley Fool recommends Digital Realty Trust. The Motley Fool has a disclosure policy.

My Top Dividend Stock to Buy in October Yields 6% and Cuts Shareholders a Monthly Check

Dollar General Corporation DG received a meaningful boost from tariff refunds during the second quarter of fiscal 2026, supporting margin expansion and profitability. The company reported that gross profit as a percentage of sales increased 127 basis points year over year to 32.6%. The improvement stemmed from tariff refunds, lower LIFO provisions and reduced distribution costs. Dollar General estimated that tariff refunds, after related reinvestments, contributed approximately 81 basis points to gross margin expansion during the quarter.
The benefit from tariff refunds also flowed through to operating profitability. Operating profit increased 29.2% year over year to $769.2 million, while operating margin expanded 126 basis points to 6.8%. The company estimated that tariff refunds, after reinvestments, contributed approximately 66 basis points to operating margin growth. Earnings per share increased 33% to $2.48, including an estimated 25 cents benefit from tariff refunds after related reinvestments.
Dollar General directed a substantial portion of the tariff refunds to enhance its customer value proposition. Management noted that the company invested in targeted promotional activities, lower everyday prices and customer-facing initiatives, including increased marketing expenses.
The company received the majority of its expected tariff refunds in the second quarter and does not anticipate a material impact from tariff refunds after related reinvestments in the second half of fiscal 2026. While tariff refunds supported margin expansion during the quarter, Dollar General noted that other operational improvements also contributed to profitability, including supply-chain efficiencies, and progress in shrink and damages.
How Tariff Refunds Are Affecting Walmart and Target
Walmart Inc. WMT is also using tariff refunds as a temporary earnings and margin benefit while directing much of the proceeds back into pricing. In the second quarter of fiscal 2027, Walmart said tariff refunds helped lift gross profit and operating income, with operating income receiving an approximately 750-basis-point net benefit after price investments. Walmart expects to continue prioritizing the remaining tariff refunds toward customer experience and price investments in the second half.
Target Corporation TGT saw an even more pronounced second-quarter fiscal 2026 earnings benefit from tariff refunds. Target recognized $994 million of pretax tariff refunds, which added $752 million to net earnings and $1.65 to earnings per share. Target said the refunds contributed 3.7 percentage points to both gross margin and operating margin in the quarter. Its full-year guidance includes about 90 basis points of operating-margin benefit from second-quarter refunds while excluding any potential future tariff refunds.
How Does Dollar General Stack Up Against Its Industry?
Dollar General has seen its shares advance 8% over the past three months against the industry’s 1.7% decline.
What Does Dollar General’s Current Valuation Suggest?
From a valuation standpoint, Dollar General's forward 12-month price-to-earnings ratio stands at 15.13, lower than the industry’s 27.38. The stock is also trading below its 12-month median level of 16.03.
What Do Earnings Estimates Signal for Dollar General?
The Zacks Consensus Estimate for Dollar General’s earnings per share for the current and next fiscal year has increased by 50 cents and 32 cents to $7.89 and $8.39, respectively, over the past 30 days.
Dollar General currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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How Tariff Refunds Strengthened Dollar General's Q2 Results

Key Points
Very few dividend stocks can now compete with bonds’ income potential, even including super-safe government bonds.
One stock in particular, however, can top higher Treasury yields without posing significantly more risk.
While this ticker boasts a better income profile, unlike most other stocks, there’s no guarantee of major capital appreciation. Given its yield though, you may not care.
For the first time in a long time, Treasury bonds are a compelling alternative to dividend stocks.
The yield on 10-year Treasuries now stands at a 19-year high of right around 5%, in fact, versus the S&P 500's (SNPINDEX: ^GSPC) average dividend yield of just over 1%. Indeed, only about 25 of the index's stocks offer better yields than 10-year Treasuries do at this time, and some of those names aren't exactly on a firm footing.
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There's one of these higher-yielding S&P 500 names, however, that I'd recommend more than any other dividend stock right now. That stock is Realty Income (NYSE: O), which currently boasts a forward-looking yield of 5.8%.
What's Realty Income?
You may be more familiar with this unfamiliar name than you realize. It doesn't do any consumer-facing business. Rather, it supports a bunch of consumer-facing companies you're sure to know.
Specifically, Realty Income is a landlord to a bunch of brick-and-mortar retailers including Walmart, CVS, Family Dollar, and Dollar General just to name few. Although the retailing industry may be struggling to compete with online-shopping alternatives, Realty Income's consistent occupancy rate of nearly 99% (of its 15,500 individual properties) indicates its tenants are the business's most resilient names.
It's ideally built to serve as a dividend-paying stock too.
See, Realty Income is structured as a real estate investment trust, or REIT. That just means as long as the majority of its rent-driven profits are passed along to shareholders in the form of dividend payments, they're not first taxed at the corporate level only to have it taxed again when investors receive that income.
And this REIT's dividend pedigree proves the company's resilience. Not only has Realty Income paid a dividend like clockwork since being founded in 1969, but has raised its annualized per-share dividend payment every year for the past 31 years.
The kicker: Unlike most dividend stocks, rather than a quarterly dividend, Realty Income's dividends are paid on a monthly basis, more closely aligning with how consumers incur their bills (if you're looking for income stocks to help cover your recurring costs of living).
More pro than con
That's the bull case anyway, although there is one arguable downside to consider before diving in. That is, although Realty Income shares trade just like any other stock and are therefore capable of producing capital appreciation, they don't always do so. Being dependent on borrowing to fund the purchase of properties that facilitate expansion, this ticker is highly sensitive to high and/or rising interest rates. That's a big part of the reason this stock's made little net progress since early 2020, when the COVID-19 pandemic was in full swing.
Nevertheless, with such a strong starting yield and reliable dividend growth that isn't apt to stop anytime soon, Realty Income is still one of the only longer-term income holdings I'd be interested in buying at this time even though I could lock in a respectable interest rate of 5% for a 10-year stretch with bonds backed by the U.S. government itself.
Should you buy stock in Realty Income right now?
Before you buy stock in Realty Income, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,379,943!*
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Only a Handful of S&P 500 Stocks Can Match 10-Year Treasuries at 5%. Here's My Top Pick to Buy Now.

Costco Wholesale Corporation COST reported fourth-quarter fiscal 2026 adjusted earnings of $6.60 per share, which beat the Zacks Consensus Estimate of $6.48 and increased 12.4% year over year. Reported earnings came in at $6.75 per share, including a 15-cent nonrecurring benefit related to tariff refunds.
Total revenues rose 11.1% year over year to $95,723 million, surpassing the consensus estimate of $94,820 million. Comparable sales increased 9.4%, while digitally enabled comparable sales advanced 19.5%.
Costco Wholesale Corporation Price, Consensus and EPS Surprise
COST Posts Solid Comparable Sales Growth
Net sales improved 11.2% year over year to $93,873 million. Comparable sales growth was supported by a 3.3% increase in worldwide traffic and a 5.9% rise in average ticket.
Excluding gasoline price and foreign exchange impacts, comparable sales increased 6.7%, with both adjusted ticket and traffic growth of 3.3%. Gas price inflation contributed about three percentage points to reported sales growth, while foreign exchange had a roughly 0.3% negative impact.
Costco Sees Broad Regional Sales Gains
Comparable sales in the United States increased 10.7%, while Canada and Other International markets registered gains of 5% and 7%, respectively. On an adjusted basis, comparable sales grew 7.2% in the United States, 4.6% in Canada and 6.2% in Other International markets.
Nonfoods delivered mid-to-high-single-digit comparable sales growth, led by gold and jewelry, home furnishings, housewares, small electrics, and health and beauty. Fresh foods recorded mid-single-digit comparable sales growth, driven by bakery and meat, while food and sundries posted low-to-mid-single-digit gains.
COST’s Membership Trends Remain Healthy
Membership fee income increased 7.3% year over year to $1,849 million and rose 7.7%, excluding foreign exchange effects. Excluding foreign exchange and the September 2024 membership fee increase, membership income advanced 6.8%, driven by higher executive membership penetration and membership growth.
Costco ended the quarter with 84.1 million paid members, up 3.8%, and 150.4 million cardholders, up 3.6%. Paid executive memberships increased 9.4% to 42.3 million. U.S. and Canada renewal rates improved 10 basis points sequentially to 92.3%, while the worldwide rate reached 89.8%.
Costco's Digital Business Maintains Momentum
Digitally enabled comparable sales increased 19.5%, or 19.8% excluding foreign exchange impacts. Site and app traffic climbed 30%, with pharmacy, home furnishings, small electrics, hardware, housewares, domestics, and health and beauty among the strongest digital categories.
Costco expanded third-party same-day delivery through Uber Eats and DoorDash in the United States alongside its Instacart partnership. Management said digitally enabled sales exceeded $33 billion in fiscal 2026 and grew more than 20%.
COST's Margins Reflect Gas and Tariff Effects
Gross margin contracted 11 basis points year over year to 11%. Excluding gasoline inflation, however, gross margin improved 20 basis points. Core-on-core margins on their own sales increased 18 basis points after excluding tariff refund effects, helped by supply-chain efficiencies and improved fresh-food labor productivity.
The SG&A rate improved 27 basis points to 8.9%, though the improvement narrowed to two basis points, excluding gasoline inflation. Operating income increased 13.8% year over year to $3,801 million.
Costco Expands Warehouses and Investment
Costco ended fiscal 2026 with 939 warehouses after opening 25 net new locations during the year. Management plans 33 openings in fiscal 2027, including five relocations, for a net 28 new warehouses.
Cash and cash equivalents stood at $20,207 million at fiscal year-end, up from $14,161 million a year earlier. Fiscal 2026 operating cash flow increased to $15,825 million from $13,335 million, while additions to property and equipment totaled $6,435 million. Costco plans approximately $7.5 billion in capital expenditures for fiscal 2027, primarily supporting warehouse growth and supply-chain investments.
Shares of this Zacks Rank #3 (Hold) company have fallen 5.9% over the past three months compared with the industry’s decline of 4.8%.
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Target Corporation TGT, a general merchandise retailer, carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Target’s current financial-year sales and earnings indicates growth of 5.1% and 37.8%, respectively, from the prior-year reported levels. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.
Ross Stores, Inc. ROST is one of the largest off-price apparel and home fashion chains in the United States. ROST carries a Zacks Rank #2.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings per share implies growth of 12.4% and 32.7%, respectively, from the year-ago reported figures. ROST delivered a trailing four-quarter earnings surprise of 11.2%, on average.
Dollar General Corporation DG, a discount retailer, currently carries a Zacks Rank #2. DG delivered a trailing four-quarter earnings surprise of 19.1%, on average.
The Zacks Consensus Estimate for Dollar General's current fiscal-year sales and earnings calls for growth of 4.2% and 15.2%, respectively, from the year-ago reported figures.
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COST Q4 Earnings Beat Estimates on Sales and Digital Strength

The S&P 500 Index ($SPX) (SPY) is down by -0.41% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.58%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.68%. December E-mini S&P futures (ESZ26) are down -0.48%, and December E-mini Nasdaq futures (NQZ26) are down -0.70%.
Stock indexes are under pressure today, with the Dow Jones Industrials falling to a 1-week low as higher crude oil prices fuel inflation concerns and push up bond yields worldwide. WTI crude is up more than +2% today after an Iranian official warned Iran may expand the war to the Indian Ocean if the US or Israel attacks again.
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The jump in crude oil prices has sparked a sell-off in global bond markets, with the 10-year T-note yield climbing to a 19-year high of 5.15%, the German 10-year Bund yield rising to a 17-year high of 3.59%, and Japan’s 10-year JGB bond yield soaring to a 30-year high of 3.09%. The surge in bond yields is weighing on interest rate-sensitive technology stocks today, with chipmakers and AI-infrastructure stocks retreating.
However, stocks recovered from their worst levels on signs of strength in the US economy after weekly jobless claims unexpectedly fell to a 2-month low and Aug new home sales rose to an 8-month high. Also, T-note yields fell from their early highs and stabilized.
Also on the positive side for stocks, Treasury Secretary Bessent said late Wednesday that the US and China agreed to extend their trade truce an additional two months until January 10.
US weekly initial unemployment claims unexpectedly fell -1,000 to a 2-month low of 197,000, showing a stronger labor market than expectations of an increase to 200,000.
US Aug new home sales rose +6.4% m/m to an 8-month high of 684,000, stronger than expectations of 616,000.
Hawkish Fed comments today signal support for additional rate hikes and are negative for stocks and bonds. New York Fed President John Williams said the Fed still has a lot of work to do given high energy prices and demand driven by investment in artificial intelligence. Also, Philadelphia Fed President Anna Paulson said underlying measures of inflation remain "stubbornly elevated" and have shown little to no progress. "Looking ahead, if conditions evolve as I expect, some modest further tightening of monetary policy may be warranted" to ensure inflation returns to the Fed's 2% goal.
Nov WTI crude oil prices (CLX26) are up more than +2% after Iran threatened to expand the war in the Middle East after a senior member of Iran's Revolutionary Guard Corps warned that Iran may expand the war to the Indian Ocean if the US or Israel attacks again. Optimism that the US and Iran could reach a settlement that would help normalize energy flows through the Strait of Hormuz has receded over the past two days amid aggressive rhetoric from President Trump and defiance from Iran.
Markets are discounting a 65% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.03%. China's Shanghai Composite closed down -1.22%. Japan's Nikkei-225 Stock Average rallied to a 2-week high and closed up +0.76%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by +3 ticks today. The 10-year T-note yield is up +1.3 bp to 5.127%. Dec T-notes matched Wednesday’s 19-year nearest-futures low today, and the 10-year T-note yield climbed to a 19-year high of 5.148%. Today’s +2% increase in WTI crude oil prices has boosted inflation expectations and is weighing on T-notes. Also, today’s better-than-expected US economic news on weekly jobless claims and Aug new home sales show economic strength and are hawkish for Fed policy. In addition, hawkish Fed comments today are weighing on T-notes prices after New York Fed President John Williams and Philadelphia Fed President Anna Paulson signaled their support for tighter Fed policy. Finally, supply pressures are bearish for T-notes as the Treasury will auction $44 billion of 7-year T-notes later today.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 17-year high of 3.594% and is up +3.4 bp to 3.589%. The 10-year UK gilt yield rose to a 1-week high of 5.388% and is up +0.5 bp to 5.352%.
Eurozone Aug new car registrations rose +4.5% y/y to 708,000 units.
The German Sep IFO business climate survey rose +1.1 to a 3.25-year high of 89.9, stronger than expectations of 89.0.
ECB Executive Board member Isabel Schnabel said the energy shock caused by the Iran war is proving to be longer-lasting than initially thought and is spreading beyond just oil.
ECB Governing Council member Dimitar Radev said policymakers must give recent interest rate hikes time to work before assessing whether additional hikes are needed.
Markets are discounting a 55% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks are under pressure today, weighing on the overall market. The iShares Semiconductor ETF (SOXX) is down more than -1%. Western Digital is down more than -3% to lead losers in the Nasdaq 100 and ARM Holdings Plc (ARM) is down more than -3%. Also, SanDisk (SNDK), Microchip Technology (MCHP), Applied Materials (AMAT), Marvell Technology (MRVL), KLA Corp (KLAC),Broadcom (AVGO), Qualcomm (QCOM), NXP Semiconductors NV (NXPI), and Lam Research (LRCX) are down more than -2%. In addition, Micron Technology (MU), ASML Holding NV (ASML), Nvidia (NVDA), Analog Devices (ADI), and Texas Instruments (TXN) are down more than -1%.
Software stocks are under pressure today, led by a -5% fall in Oracle (ORCL) after it sent a notice citing force majeure to the project’s developer of a data center, a unit of Blue Owl Capital, in New Mexico in an attempt to put off payments should the data center dubbed Project Jupiter get derailed and fail to come online in 2028 as planned. Also, IBM (IBM) is down more than -2% to lead losers in the Dow Jones Industrials. In addition, ServiceNow (NOW), Microsoft (MSFT), and Autodesk (ADSK) are down more than -1%.
Energy stocks and service providers are climbing today, with WTI crude oil up more than +2%. Valero Energy (VLO) is up more than +3%, and Devon Energy (DVN), Diamondback Energy (FANG), Marathon Petroleum (MPC), and Phillips 66 (PSX) are up more than +2%. APA Corp (APA), Chevron (CVX), ConocoPhillips (COP), Occidental Petroleum (OXY), ExxonMobil Holdings (XOM), and Halliburton (HAL) are up more than +1%.
MGM Resorts International (MGM) is down more than -9% to lead losers in the S&P 500 after People Inc. dropped its plans to acquire the remaining shares of the company.
Gen Digital (GEN) is down more than -6% after the Financial Times reported the company has made an offer to acquire GoDaddy.
Rollins (ROL) is down more than -6% after Piper Sandler downgraded the stock to neutral from overweight.
Dropbox (DBX) is down more than -3% after Citigroup downgraded the stock to sell from neutral with a price target of $29.
Alkami Technology (ALKT) is down more than -3% after JPMorgan Chase double-downgraded the stock to underweight from overweight with a price target of $14.
Everpure (P) is up more than +17% to lead gainers in the S&P 500 after forecasting 2028 revenue of $7.0 billion to $7.3 billion, well above the consensus of $6.19 billion.
GoDaddy (GDDY) is up more than +7% after the Financial Times reported that Gen Digital has made an offer to acquire the company.
Charles River Laboratories (CRL) is up more than +5% after reaffirming its 2026 financial guidance.
Dollar General (DG) is up more than +2% after HSBC upgraded the stock to buy from hold with a price target of $160.
Earnings Reports (9/24/2026)
Costco Wholesale Corp (COST), Darden Restaurants Inc (DRI), NexPoint Diversified Real Estate Trust (NXDT), Scholastic Corp (SCHL), TD SYNNEX Corp (SNX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Retreat as Bond Yields Climb on Inflation Risks

The S&P 500 Index ($SPX) (SPY) is down by -0.36% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.44%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.55%. December E-mini S&P futures (ESZ26) are down -0.36%, and December E-mini Nasdaq futures (NQZ26) are down -0.60%.
Stock indexes are under pressure today, with the Dow Jones Industrials falling to a 1-week low as higher crude oil prices fuel inflation concerns and push up bond yields worldwide. WTI crude is up more than +2% today after an Iranian official warned Iran may expand the war to the Indian Ocean if the US or Israel attacks again.
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The jump in crude oil prices has sparked a sell-off in global bond markets, with the 10-year T-note yield climbing to a 19-year high of 5.15%, the German 10-year Bund yield rising to a 17-year high of 3.59%, and Japan’s 10-year JGB bond yield soaring to a 30-year high of 3.09%. The surge in bond yields is weighing on interest rate-sensitive technology stocks today, with chipmakers and AI-infrastructure stocks retreating.
Today’s US economic news showed weekly initial unemployment claims unexpectedly fell -1,000 to a 2-month low of 197,000, showing a stronger labor market than expectations of an increase to 200,000.
Hawkish comments today from New York Fed President John Williams signal he favors additional Fed rate hikes and are bearish for stocks and bonds. He said the Fed still has a lot of work to do given high energy prices and demand driven by investment in artificial intelligence.
On the positive side for stocks, Treasury Secretary Bessent said late Wednesday that the US and China agreed to extend their trade truce an additional two months until January 10.
Nov WTI crude oil prices (CLX26) are up more than +2% after Iran threatened to expand the war in the Middle East after a senior member of Iran's Revolutionary Guard Corps warned that Iran may expand the war to the Indian Ocean if the US or Israel attacks again. Optimism that the US and Iran could reach a settlement that would help normalize energy flows through the Strait of Hormuz has receded over the past two days amid aggressive rhetoric from President Trump and defiance from Iran.
Markets are discounting a 64% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.21%. China's Shanghai Composite closed down -1.22%. Japan's Nikkei-225 Stock Average rallied to a 2-week high and closed up +0.76%.
Interest Rates
December 10-year T-notes (ZNZ6) are up by +4 ticks today. The 10-year T-note yield is down -1.7 bp to 5.098%. Dec T-notes erased early losses today and moved higher, and the 10-year T-note yield fell from a 19-year high of 5.148% and turned lower. Comments from Richmond Fed President Barkin sparked short covering in T-notes today, when he said new job growth in the US labor market remains slow.
T-notes initially fell today on the +2% increase in WTI crude oil prices, which boosts inflation expectations. Also, today’s unexpected decline in weekly jobless claims to a 2-month low signals labor market strength that is hawkish for Fed policy. In addition, hawkish comments from New York Fed President John Williams weighed on T-notes today when he signaled he favors additional Fed rate hikes, saying the Fed still has a lot of work to do to contain inflation. Finally, supply pressures are bearish for T-notes as the Treasury will auction $44 billion of 7-year T-notes later today.
European government bond yields are mixed today. The 10-year German bund yield rose to a 17-year high of 3.589% and is up +1.2 bp to 3.567%. The 10-year UK gilt yield fell from a 1-week high of 5.388% and is down -1.7 bp to 5.330%.
Eurozone Aug new car registrations rose +4.5% y/y to 708,000 units.
The German Sep IFO business climate survey rose +1.1 to a 3.25-year high of 89.9, stronger than expectations of 89.0.
ECB Executive Board member Isabel Schnabel said the energy shock caused by the Iran war is proving to be longer-lasting than initially thought and is spreading beyond just oil.
ECB Governing Council member Dimitar Radev said policymakers must give recent interest rate hikes time to work before assessing whether additional hikes are needed.
Markets are discounting a 52% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks are under pressure today, weighing on the overall market. The iShares Semiconductor ETF (SOXX) is down more than -1%. Western Digital is down more than -3% to lead losers in the Nasdaq 100 and SanDisk (SNDK) is down more than -3%. Also, ARM Holdings Plc (ARM), Microchip Technology (MCHP), KLA Corp (KLAC), NXP Semiconductors NV (NXPI), Micron Technology (MU), and Lam Research (LRCX) are down more than -2%. In addition, Applied Materials (AMAT), ASML Holding NV (ASML), Nvidia (NVDA), Broadcom (AVGO), Analog Devices (ADI), and Texas Instruments (TXN) are down more than -1%.
Software stocks are under pressure today, led by a -7% fall in Oracle (ORCL) after it sent a notice citing force majeure to the project’s developer of a data center, a unit of Blue Owl Capital, in New Mexico in an attempt to put off payments should the data center dubbed Project Jupiter get derailed and fail to come online in 2028 as planned. Also, IBM (IBM) is down more than -2% to lead losers in the Dow Jones Industrials, and ServiceNow (NOW) are down more than -2%. In addition, Microsoft (MSFT), Palantir Technologies (PLTR), Atlassian Corp (TEAM), and Datadog (DDOG) are down more than -1%.
Energy stocks and service providers are climbing today, with WTI crude oil up more than +2%. Marathon Petroleum (MPC), Phillips 66 (PSX), and Valero Energy (VLO) are up more than +2%. Also, APA Corp (APA), ConocoPhillips (COP), Devon Energy (DVN), Occidental Petroleum (OXY), and ExxonMobil Holdings (XOM) are up more than +1%.
MGM Resorts International (MGM) is down more than -10% to lead losers in te S&P 500 after People Inc. dropped its plans to acquire the remaining shares of the company.
Dropbox (DBX) is down more than -3% after Citigroup downgraded the stock to sell from neutral with a price target of $29.
Alkami Technology (ALKT) is down more than -3% after JPMorgan Chase double-downgraded the stock to underweight from overweight with a price target of $14.
Darden Restaurants (DRI) is down more than -2% after reporting Q1 sales of $3.20 billion, below the consensus of $3.21 billion.
Everpure (P) is up more than +10% to lead gainers in the S&P 500 after forecasting 2028 revenue of $7.0 billion to $7.3 billion, well above the consensus of $6.19 billion.
Dollar General (DG) is up more than +2% after HSBC upgraded the stock to buy from hold with a price target of $160.
Earnings Reports (9/24/2026)
Costco Wholesale Corp (COST), Darden Restaurants Inc (DRI), NexPoint Diversified Real Estate Trust (NXDT), Scholastic Corp (SCHL), TD SYNNEX Corp (SNX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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Stocks Pressured by Rising Crude Prices

Fintel reports that on September 24, 2026, HSBC upgraded their outlook for Dollar General (NYSE:DG) (BMV:DGG) from Hold to Buy. This upgrade comes as the discount retailer, which operates an extensive network of over 18,000 stores across 47 states, continues to focus on its DG Fresh initiative and digital transformation. Dollar General primarily offers consumables, seasonal items, home products, and apparel at low everyday prices. Prior to the rating action, the company's stock closed at $120.60 on September 23, 2026. This latest close represents a one-week price change of -1.96% from its baseline close of $123.01 on September 16, 2026, and a one-month price change of -2.28% from its baseline close of $123.41 on August 21, 2026.
As of September 15, 2026, the current consensus target price for Dollar General stands at a mean of $141.02 and a median of $140.76, representing an implied change of +16.93% from the stock's valuation. This mean target reflects a revision of +5.27% from the prior consensus target mean of $133.96 recorded on August 27, 2026. In terms of analyst recommendations, the current period as of September 1, 2026, shows a total of 40 recommendations, consisting of 10 strong buy, 8 buy, 21 hold, 1 sell, and 0 strong sell ratings. These figures, which represent 45.0% positive, 52.5% hold, and 2.5% negative recommendations, remained unchanged from the prior recommendation period on August 1, 2026.
Dollar General last reported its quarterly earnings on August 27, 2026. The company posted an actual EPS of 2.23, which exceeded the estimated EPS of 2.0679, representing a positive surprise of +7.84%. Actual revenue for the quarter was $11,290,680,000.00, compared to the estimated revenue of $11,532,494,467.00. Following these financial results, several other analyst firms updated or maintained their positions. On September 8, 2026, Barclays maintained its Overweight rating. Argus Research maintained its Buy rating on September 4, 2026, while Guggenheim reiterated its Buy rating on August 31, 2026. Earlier, on August 28, 2026, Morgan Stanley maintained an Equal-Weight rating, Piper Sandler maintained a Neutral rating, and Goldman Sachs maintained a Neutral rating.
Recent analyst actions
Recent analyst upgrades, downgrades, initiations, and maintained ratings
Date
Analyst
Prior
Latest recommendation
Action
September 24, 2026
HSBC
Hold
Buy
upgrade
September 8, 2026
Barclays
Overweight
Overweight
maintained
September 4, 2026
Argus Research
Buy
Buy
maintained
August 31, 2026
Guggenheim
Buy
Buy
reiterated
August 28, 2026
Morgan Stanley
Equal-Weight
Equal-Weight
maintained
August 28, 2026
Piper Sandler
Neutral
Neutral
maintained
August 28, 2026
Goldman Sachs
Neutral
Neutral
maintained
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
This story originally appeared on Fintel.

HSBC Upgrades Dollar General to Buy from Hold

As Costco Wholesale Corporation COST prepares to unveil its fourth-quarter fiscal 2026 earnings results on Sept. 24, after the market closes, investors face an important decision: Should they buy, hold or sell the stock? With expectations and market conditions in focus, it is crucial to evaluate the key factors influencing Costco’s performance and whether the stock offers an attractive entry point.
Costco's strategic investments, customer-centric approach, merchandise initiatives and focus on membership growth have supported steady sales and earnings growth, positioning COST as a consumer defensive stock.
The Zacks Consensus Estimate for fourth-quarter revenues stands at $94.82 billion, calling for a 10.1% increase from the prior-year reported figure. On the earnings front, the consensus estimate has fallen by 3 cents to $6.48 per share over the past 30 days but still implies a 10.4% year-over-year jump.
Costco has a trailing four-quarter earnings surprise of 1%, on average. In the last reported quarter, this Issaquah, WA-based company beat the Zacks Consensus Estimate by a margin of 0.4%.
What the Zacks Model Predicts About COST’s Q4 Earnings
As investors prepare for Costco's fourth-quarter announcement, the question looms regarding an earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Costco this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco has a Zacks Rank #3 but an Earnings ESP of -0.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Costco Wholesale Corporation Price, Consensus and EPS Surprise
Costco: Key Factors at Play
Costco’s fourth-quarter performance is likely to have benefited from the continued strength of its value-focused merchandising model, which supports shopping frequency and basket expansion even in a cautious consumer environment. Members continued to respond well to the combination of quality, value and newness, with healthy demand likely across fresh foods, nonfoods and everyday essentials. Kirkland Signature also remained an important engagement driver through new product launches and attractive pricing, reinforcing traffic and member loyalty.
In its August sales report, Costco highlighted that net sales rose 11.3% year over year to $93.9 billion for the 16-week fourth quarter. Comparable sales increased 9.4% companywide. The United States posted a 10.7% comparable-sales gain, while Canada and Other International rose 5% and 7%, respectively.
The company’s expanding paid membership base and healthy growth in Executive memberships are also likely to have contributed to fourth-quarter performance. Executive members generally shop more frequently and spend more with Costco, supporting sales. Meanwhile, targeted digital communications and retention efforts are helping stabilize renewal trends, while management remained encouraged by new-member sign-ups. The continued shift toward Executive memberships, along with the benefit from the earlier fee increase, is likely to have supported membership-fee income.
Costco’s expanding digital capabilities and warehouse network may have provided further support to the top line. The company has been improving checkout speed, mobile-wallet functionality and digital membership access while expanding same-day delivery and personalized online recommendations. We note that digitally enabled comparable sales climbed 19.5% during the final quarter. At the same time, Costco remained focused on opening and relocating warehouses, remodeling high-volume locations and improving parking and gas-station capacity to enhance convenience and support higher volumes.
However, Costco may have faced pressure from an uncertain cost environment. Inflationary pressures stemming from higher input and component costs, along with tariff-related uncertainty, remained concerns. Combined with the company’s continued focus on maintaining attractive prices for members, these factors are likely to have weighed on margins in the fourth quarter.
Costco Stock Price Performance
Costco, which competes with Dollar General Corporation DG and Target Corporation TGT, has seen its shares jump 4.3% in the year-to-date period compared with the industry’s rise of 4.4%. While shares of Target have surged 62.6%, those of Dollar General have fallen 7.7% in the aforementioned period.
Image Source: Zacks Investment Research
Does Costco Tick the Boxes for Value Investing?
From a valuation standpoint, Costco currently trades at a premium relative to its industry peers. The company’s forward 12-month price-to-earnings (P/E) ratio is 39.75, higher than the industry average of 27.04 and the S&P 500’s 20.06. However, the stock is trading below its median P/E level of 45.28, observed over the past year.
Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 16.30) and Dollar General (15.16).
Image Source: Zacks Investment Research
How to Play Costco Stock Ahead of Q4 Earnings?
Costco’s resilient sales trends, strong membership base, digital momentum and value proposition support the long-term story, but margin pressures, a premium valuation and the lack of a clear earnings-beat signal warrant some caution ahead of the release. Existing investors may consider holding their positions, while prospective investors may be better served waiting for greater clarity from the fourth-quarter results before initiating a position. Overall, the risk-reward setup suggests a measured approach rather than aggressive buying ahead of earnings.
Zacks' Research Chief Names "Stock Most Likely to Double"
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This article originally published on Zacks Investment Research (zacks.com).

Should You Buy, Hold or Sell Costco Stock Before Q4 Earnings?

Dollar General Corporation DG is placing a greater emphasis on its DG Media Network as part of its broader digital ecosystem. Management said the network is designed to improve on-site performance through better search, sponsored products and a stronger e-commerce experience while also capturing off-site advertising spend across social media, connected TV and video.
The company is extending this reach into stores through initiatives such as its expanded in-store radio network, creating more links between digital engagement and the physical shopping experience.
The opportunity is already meaningful. Management said the business had reached about $170 million in annual volume at the end of last year and expects it to grow meaningfully. Dollar General believes its network offers advertisers access to an unduplicated audience and can deliver high returns on ad spend. Growth efforts include adding more advertising opportunities across stores, the app and the website while increasing digital engagement to attract more advertisers.
The next phase may depend on how quickly Dollar General deepens customer engagement across its digital platforms. Management plans to pilot subscription and loyalty initiatives late this year, with a broader rollout expected in 2027. The company also lists DG Media Network growth among the drivers expected to support gross margin improvement, indicating that the business is becoming more relevant to Dollar General’s profit mix.
How Walmart & Target Are Scaling Retail Media Compared With DG
Walmart Inc. WMT is scaling its retail media business rapidly, with global advertising growing 38% in second-quarter fiscal 2027 and Walmart U.S. advertising also up 38%. Walmart Connect, excluding VIZIO, advanced 43%, while advertising helped improve business mix and e-commerce economics. Walmart also strengthened the platform through its Vibe acquisition, aimed at expanding self-service tools and helping advertisers measure results against actual shopping behavior.
Target Corporation TGT is likewise leaning on Roundel as a higher-margin growth contributor. Target said non-merchandise sales rose more than 20% in second-quarter 2026, reflecting strong growth in Roundel advertising revenues, Target Circle 360 membership revenues and Target+. Target also noted that continued growth in advertising and non-merchandise sales supported gross margin expansion. With technology investments aimed at personalization and retail media, Target is working to deepen digital engagement and expand Roundel’s opportunity.
How Does Dollar General Stack Up Against Its Industry?
Dollar General has seen its shares advance 2.9% over the past three months against the industry’s 7.6% decline.
What Does Dollar General’s Current Valuation Suggest?
From a valuation standpoint, Dollar General's forward 12-month price-to-earnings ratio stands at 15.16, lower than the industry’s 27.04. The stock is also trading below its 12-month median level of 16.04.
What Do Earnings Estimates Signal for Dollar General?
The Zacks Consensus Estimate for Dollar General’s earnings per share for the current and next fiscal year has increased by 48 cents and 29 cents to $7.86 and $8.35, respectively, over the past 30 days.
Dollar General currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Is Dollar General's DG Media Network the Next Growth Engine?

Target Corporation’s TGT retail media business, Roundel, remained a notable growth driver in the second quarter of fiscal 2026. Management said gross billings from Roundel increased nearly 20% year over year. Non-merchandise sales grew 20.1%, with Roundel among the businesses driving that strength.
The company reported $279 million in advertising revenues for the quarter compared with $217 million in the year-ago period. Advertising revenues for the first half increased to $525 million from $379 million. Target said these revenues primarily reflect advertising services provided through its Roundel digital advertising business.
Roundel's importance is becoming more visible in Target’s profit mix. The company said its second-quarter gross margin rate, excluding tariff refunds, was roughly one percentage point higher than last year. Part of that improvement came from continued growth in advertising and non-merchandise sales, alongside the comparison against elevated markdown and purchase-order cancellation costs in the prior year.
The expansion of Roundel highlights the growing importance of higher-margin non-merchandise revenues within Target’s business mix. As Roundel continues to scale, its growth is strengthening Target’s mix of higher-margin revenue streams, which management said are contributing to outsized top- and bottom-line growth. Continued growth in advertising and non-merchandise sales is also supporting the retailer’s underlying margin performance.
How WMT & DG Are Scaling Retail Media Compared With Target
Walmart Inc. WMT is scaling its retail media business rapidly, with global advertising growing 38% in second-quarter fiscal 2027 and Walmart U.S. advertising also up 38%. Walmart Connect, excluding VIZIO, advanced 43%, while advertising helped improve business mix and e-commerce economics. Walmart also strengthened the platform through its Vibe acquisition, aimed at expanding self-service tools and helping advertisers measure results against actual shopping behavior.
Dollar General Corporation DG is similarly developing DG Media Network as a profit lever. Dollar General said the network reached $170 million in annual volume at the end of last year and is expected to grow meaningfully. Dollar General is expanding advertiser opportunities across stores, its app and website while increasing digital engagement. Dollar General also identifies DG Media Network growth among the initiatives expected to support gross margin expansion.
How Does Target Stack Up Against Its Industry?
Target has seen its shares rally 12.6% over the past three months against the industry’s 7.6% decline.
What Does Target’s Current Valuation Suggest?
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 16.30, lower than the industry’s 27.04. However, the stock is trading above its 12-month median level of 14.84.
What Do Earnings Estimates Signal for Target?
The Zacks Consensus Estimate for Target’s earnings per share for the current and next fiscal year has increased by 16 cents and 9 cents to $10.43 and $9.38, respectively, over the past 30 days.
Target currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Dollar General Corporation

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