I’ve been waiting for an opportunity to jump into DG for a while. They missed earnings by 1.87%, revenue by 1.39%, and slashed EPS from a forecast of 4-6% to flat to an 8% decrease. There is not much short interest (2.5%) and they’ve dropped to a 3 year low today.
With a favorable PE, high dividend, and current ratio of 1.2 someone tell me why it isn’t a good idea to start building a position? Since they are back to pre-pandemic levels, do you believe their gains for the past 3 years have been mainly from the excess of cash pumped into the economy?
I realize their core customers (low to lower middle class) have been effected hardest by inflation, but being from the midwest you can barely drive though any small town without see one.
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