Should You Buy Dollar General Corp (DG) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
147.660
1 Day change
-1.78%
52 Week Range
154.750
Analysis Updated At
2026/01/25
Dollar General Corp (DG) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, and recent initiatives to expand services outweigh the cautious insider and congressional trading data. Despite some technical indicators showing mixed signals, the long-term growth potential and favorable market conditions make this a suitable investment.
Technical Analysis
The technical indicators are mixed. The MACD is negatively expanding (-0.947), indicating bearish momentum. However, the RSI is neutral at 53.696, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near a key support level (S1: 143.044) and below the pivot (148.086), suggesting a potential buying opportunity if the price stabilizes.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
The options data indicates a neutral to slightly bullish sentiment, with a put-call ratio below 1 and higher call volume compared to put volume.
Moving Average Consensus
Sell
3
Buy
7
Positive Catalysts
2026/01/25 23:23:00
Strong financial performance in Q3 2026, with revenue up 4.58% YoY and net income up 43.82% YoY.
Positive analyst sentiment with multiple price target upgrades and buy ratings.
Expansion of myDG Delivery service to over 17,000 stores, enhancing customer convenience.
Anticipated benefits from government affordability initiatives targeting low-income consumers.
Neutral/Negative Catalysts
2026/01/25 23:23:00
Recent $15 million settlement over deceptive pricing claims, which could impact brand reputation.
Congress members have shown caution, with 4 sale transactions and no purchases in the last 90 days.
Mixed technical indicators, with MACD showing bearish momentum.
Hedge funds and insiders are neutral, showing no significant trading activity.
Financial Performance
In Q3 2026, Dollar General reported strong financial growth. Revenue increased by 4.58% YoY to $10.65 billion, net income rose by 43.82% YoY to $282.66 million, and EPS grew by 43.82% YoY to 1.28. Gross margin also improved to 29.9%, up 3.71% YoY.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts are generally positive on Dollar General. Recent upgrades include Deutsche Bank resuming coverage with a Buy rating and a $170 price target, Barclays raising the price target to $151 with an Overweight rating, and JPMorgan upgrading to Overweight with a $166 price target. Analysts cite strong sales trends, tax refund benefits, and improved consumer spending as key drivers for the stock.
Wall Street analysts forecast DG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DG is 143.86 USD with a low forecast of 125 USD and a high forecast of 170 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
Wall Street analysts forecast DG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DG is 143.86 USD with a low forecast of 125 USD and a high forecast of 170 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Buy
7 Hold
0 Sell
Moderate Buy
Current: 150.330
Low
125
Averages
143.86
High
170
Current: 150.330
Low
125
Averages
143.86
High
170
Truist
Hold
maintain
$129 -> $144
AI Analysis
2026-01-16
Reason
Truist
Price Target
$129 -> $144
AI Analysis
2026-01-16
maintain
Hold
Reason
Truist raised the firm's price target on Dollar General to $144 from $129 and keeps a Hold rating on the shares as part of a broader research note on Hardlines/Broadlines consumer names. The firm is citing its latest Truist Card reads and ICR holiday updates in adjusting its sales and earnings estimates, though it also believes that a significant increase in tax refunds will likely boost sales across the retail space in what are typically seasonally softer months, the analyst tells investors in a research note. For the company, sales trends have continued to exceed prior expectations throughout Q4 and represent a roughly 200bps acceleration from comp trend, the firm added.
Deutsche Bank
NULL -> Buy
resume
$170
2026-01-08
Reason
Deutsche Bank
Price Target
$170
2026-01-08
resume
NULL -> Buy
Reason
Deutsche Bank resumed coverage of Dollar General with a Buy rating and $170 price target. The firm resumed coverage of the broadlines and food retailers. Deutsche expects 2026 to be another "mixed year," characterized by food disinflation, reduced government benefits, and consumers' value focus extending into the new year. The analyst says that while defensive sectors such as food retail could face a challenging setup, "there are tailwinds on the horizon," including a sizable stimulus in the first half of 2026.
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