logo
Bernstein Remains Bullish on Dollar General (DG)

Bernstein Remains Bullish on Dollar General (DG)

Yahoo4 days ago

Dollar General Corporation (NYSE:DG) is one of the . In a report released on June 10, Zhihan Ma from Bernstein maintained a Buy rating on Dollar General Corporation (NYSE:DG) with a price target of $126.00. The rating followed the company's fiscal Q1 2025 earnings release on June 3, reporting a 5.3% growth in net sales to $10.4 billion.
Dollar General Corporation (NYSE:DG) also reported a 2.4% rise in same-store sales compared to fiscal Q1 2024, while operating profit grew 5.5% to $576.1 million in the quarter. The increase in net sales was attributed to growth in same-store sales and positive sales contributions from new stores. Diluted EPS for fiscal Q1 2025 rose to $1.78, reflecting a 7.9% growth.
A busy shopping aisle filled with discounted items in a retail store.
The company also raised its financial guidance for fiscal 2025. Dollar General Corporation (NYSE:DG) now expects net sales growth of around 3.7% to 4.7%, compared to prior expectations of around 3.4% to 4.4%. It reiterated plans to execute approximately 4,885 real estate projects in fiscal year 2025, which includes up to 15 new stores in Mexico and around 575 new stores in the US.
Dollar General (NYSE:DG) is a retailer that offers a diverse array of merchandise in its stores, including consumables, beverages, seasonal items, and more.
While we acknowledge the potential of DG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

If EPS Growth Is Important To You, HomeChoice International (JSE:HIL) Presents An Opportunity
If EPS Growth Is Important To You, HomeChoice International (JSE:HIL) Presents An Opportunity

Yahoo

timean hour ago

  • Yahoo

If EPS Growth Is Important To You, HomeChoice International (JSE:HIL) Presents An Opportunity

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like HomeChoice International (JSE:HIL). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That makes EPS growth an attractive quality for any company. Impressively, HomeChoice International has grown EPS by 34% per year, compound, in the last three years. If growth like this continues on into the future, then shareholders will have plenty to smile about. It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. Not all of HomeChoice International's revenue this year is revenue from operations, so keep in mind the revenue and margin numbers used in this article might not be the best representation of the underlying business. HomeChoice International maintained stable EBIT margins over the last year, all while growing revenue 21% to R4.4b. That's progress. You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers. See our latest analysis for HomeChoice International HomeChoice International isn't a huge company, given its market capitalisation of R3.4b. That makes it extra important to check on its balance sheet strength. It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. Because often, the purchase of stock is a sign that the buyer views it as undervalued. Of course, we can never be sure what insiders are thinking, we can only judge their actions. It's worth noting that there was some insider selling of HomeChoice International shares last year, worth R1.4m. But that doesn't beat the large R3.8m share acquisition by Non-Independent Executive Chair Shirley Maltz. So, on balance, that's positive. You can't deny that HomeChoice International has grown its earnings per share at a very impressive rate. That's attractive. Growth in EPS isn't the only striking feature with company insiders adding to their holdings being another noteworthy vote of confidence for the company. In essence, your time will not be wasted checking out HomeChoice International in more detail. However, before you get too excited we've discovered 5 warning signs for HomeChoice International (2 are a bit concerning!) that you should be aware of. There are plenty of other companies that have insiders buying up shares. So if you like the sound of HomeChoice International, you'll probably love this curated collection of companies in ZA that have an attractive valuation alongside insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

RTX, NOC, and LMT: 3 High Caliber Defense Stocks in a Dangerous Market
RTX, NOC, and LMT: 3 High Caliber Defense Stocks in a Dangerous Market

Business Insider

timean hour ago

  • Business Insider

RTX, NOC, and LMT: 3 High Caliber Defense Stocks in a Dangerous Market

While we all hope for a peaceful resolution to the escalating tensions between Israel and Iran—far more important than market movements—the conflict serves as a stark reminder of the strategic value of defense stocks. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter I've written about the defense sector previously, and these picks have performed admirably since then. Let's take a look at three of the top aerospace and defense stocks, Lockheed Martin (LMT), RTX (RTX), and Northrop Grumman (NOC), to see where they stand today. Aerospace and defense companies often offer stable, long-term investment appeal. Their revenues are typically underpinned by multi-year contracts with governments and militaries, providing predictable cash flow. The industry also features high barriers to entry, given the critical nature of the work and the long-standing relationships required to secure contracts—governments are unlikely to entrust vital defense programs to unproven newcomers. Many of these companies are also mature, dividend-paying businesses, making them attractive holdings in uncertain geopolitical environments. RTX Corporation (NYSE:RTX) Formerly known as Raytheon, RTX is one of the largest and most recognizable players in the aerospace and defense sector, with a market capitalization approaching $200 billion. The company was formed through a 2020 merger between Raytheon and United Technologies' aerospace and defense businesses. Today, RTX operates through three major segments. Firstly, Collins Aerospace, a leading provider of advanced aerospace and defense systems, generated $28.3 billion in revenue in 2024. Second, Pratt & Whitney, a leader in aircraft engines and power systems, generated $28.1 billion in revenue in 2024. Lastly, Raytheon, focused on defense technologies including cybersecurity, contributed $26.7 billion last year. With nearly equal revenue distribution across its divisions, RTX is a well-balanced industrial powerhouse. While the U.S. government is its largest customer, RTX also serves global allies, including Poland and the UAE, among others, thereby reinforcing its geopolitical relevance. The stock has gained almost 40% in the past year and now trades at 25x 2025 earnings estimates, slightly above the S&P 500's forward P/E of 21.5, but not excessively priced given the company's scale and stability. RTX also appeals to income investors. It offers a 1.8% dividend yield, modestly higher than the S&P 500's 1.3%, but where it truly stands out is in dividend growth. With 32 consecutive years of dividend increases, RTX has earned its place among Dividend Aristocrats, showcasing a long-standing commitment to returning value to shareholders. Is RTX a Good Stock to Buy? Turning to Wall Street, RTX earns a consensus Moderate Buy rating based on 11 Buys, five Holds, and zero Sell ratings assigned in the past three months. The average analyst RTX stock price target of $138.93 implies 4.7% downside potential from current levels. Northrop Grumman (NYSE:NOC) Formed in 1994 through the acquisition of Grumman Aerospace by Northrop Corporation, Northrop Grumman (NOC) has grown into a $72 billion cornerstone of the aerospace and defense industry. The company produces a wide range of cutting-edge technologies, including advanced weapons, missile defense systems, and aircraft such as the B-21 Raider stealth bomber. It also maintains strong positions in space systems and mission solutions. In 2024, Northrop Grumman reported solid revenue across its diversified business units: Aeronautics ($12 billion), Space Systems ($11.7 billion), Mission Systems ($11.4 billion), and Defense Systems ($8.6 billion). This diverse revenue base highlights the company's broad capabilities and stable income streams. Like RTX, Northrop Grumman maintains a strong international footprint, serving clients in 25 countries, reinforcing its global relevance. The stock currently trades at 20x 2025 earnings estimates, making it cheaper than RTX and slightly below the S&P 500 average, positioning it as a solid, if not flashy, value play for investors. In terms of income, Northrop Grumman matches RTX with a 1.8% dividend yield. More importantly, it's a reliable dividend growth stock, having paid dividends for 35 consecutive years and increased its payout for 21 straight years, underscoring its consistency and shareholder focus. Is Northrop Grumman Stock a Good Buy? Turning to Wall Street, NOC earns a consensus Moderate Buy rating based on 10 Buys, five Holds, and zero Sell ratings assigned in the past three months. The average analyst NOC stock price target of $541.36 implies 9.4% upside potential from current levels. Lockheed Martin (NYSE:LMT) With a market cap of $112 billion, Lockheed Martin (LMT) stands as one of the most established and recognizable names in the aerospace and defense sector. The company is renowned for its iconic military aircraft, including the F-16 Falcon and the F-35 Lightning II, with its Aeronautics segment generating $28.6 billion in revenue in 2024. Lockheed Martin's operations are broad and well-diversified, including Missiles and Fire Control, which generated $12.6 billion in sales for 2024; Rotary and Mission Systems, featuring Sikorsky helicopters and maritime technologies, contributing $17.2 billion; and its Space segment, which brought in $12.4 billion for the year. Altogether, Lockheed Martin reported $71 billion in total revenue for 2024, showcasing the scale and balance of its business. Internationally, Lockheed maintains a robust global presence, working with over 50 countries, including Australia, Germany, Poland, Saudi Arabia, Singapore, and South Korea, which provides meaningful geographic diversification. From a valuation standpoint, Lockheed Martin appears attractive, trading at just 17x 2025 earnings estimates —cheaper than the broader market and the least expensive stock among its peers in this comparison. Income investors will also find Lockheed compelling. With a 2.75% dividend yield, it offers more than double the S&P 500's average and is the highest-yielding stock among prominent U.S. defense names. The company has paid dividends for 29 consecutive years and raised its payout for 22 straight years. With a payout ratio of less than 50%, Lockheed has ample room to continue growing its dividend in the years ahead. Is Lockheed Martin Stock a Buy or Sell? LMT earns a consensus Moderate Buy rating based on seven Buys, eight Holds, and zero Sell ratings assigned in the past three months. The average analyst LMT stock price target of $521.07 implies 11.2% upside potential from current levels. Why Lockheed Martin Stands Out Among Top Defense Stocks I'm bullish on all three of these aerospace and defense stocks, each of which offers a durable business model, long-standing government relationships, diversified revenue streams across multiple segments, reasonable valuations, above-average dividend yields, and impressive records of dividend growth. Among them, I find Lockheed Martin the most compelling, thanks to its lowest valuation and highest dividend yield of the group, alongside a strong track record of consistent dividend increases.

TD Securities Remains a Hold on Darden Restaurants (DRI)
TD Securities Remains a Hold on Darden Restaurants (DRI)

Business Insider

timean hour ago

  • Business Insider

TD Securities Remains a Hold on Darden Restaurants (DRI)

TD Securities analyst maintained a Hold rating on Darden Restaurants (DRI – Research Report) yesterday and set a price target of $215.00. The company's shares closed yesterday at $225.78. Confident Investing Starts Here: In addition to TD Securities, Darden Restaurants also received a Hold from Stephens's Jim Salera in a report issued yesterday. However, on the same day, Stifel Nicolaus reiterated a Buy rating on Darden Restaurants (NYSE: DRI). Based on Darden Restaurants' latest earnings release for the quarter ending February 23, the company reported a quarterly revenue of $3.16 billion and a net profit of $323.4 million. In comparison, last year the company earned a revenue of $2.97 billion and had a net profit of $312.9 million Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DRI in relation to earlier this year. Most recently, in April 2025, Charles Sonsteby, a Director at DRI sold 8,005.00 shares for a total of $1,637,422.75.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store