No. of Recommendations: 1
Took a look at DG as well and started a small position @204. >20% off its high and near 52-week low, 41% ROE, 50% Rev. growth over last 4 years ($38B), 10% earnings growth yoy, 9% op. margins, 16% annual 5-year growth rate, 21% payout, tiny short interest, currently priced the same as Fall 2020 despite good growth. Not crazy wrt debt/equity however.
DG seems well-positioned relatively speaking with likely economic slowdown and a tighter consumer. Their stores seem to have a steady flow of traffic around here in the Southeast. Who knows but I'd not be surprised to see it priced 20-25% higher over the coming year.
