Subject: Barron’s on DG
Dollar General Is No Walmart. Buy the Stock Anyway.

The company has a depressed stock, depressed earnings, a solid balance sheet, and a well-defined position in rural areas that no other retailer can match.

Dollar General is seeking to restore its standing with investors after a tough few years for the company and its shares. The stock now looks like a bargain.

The leader in the “dollar store” market certainly has fallen on hard times. Its stock has dropped 70% since a 2022 high, and its earnings have been cut in half over the same period. Shares have been hammered over the past six months as Dollar General’s two most recent earnings releases have fallen short of estimates. Wall Street, meanwhile, is skeptical that the former retailing favorite can fend off Walmart and others catering to low-income shoppers.

That view may be too pessimistic. The company has a depressed stock, depressed earnings, a solid balance sheet, and a well-defined position in rural areas that no other retailer can match
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