Dollar General's Slide Is No Surprise

Dollar General’s Slide No Surprise To LikeFolio Members

Landon discusses Dollar General Earnings on the TD Ameritrade Network

This week’s Sunday Earnings Sheet is off to a good start, with Dollar General selling off 5%+ on cuts to its future revenue and earnings outlook, making our bearish call on the company a profitable one.

Here’s what we saw in the LikeFolio Research Dashboard to come to our bearish Earnings Prediction on $DG:

Dollar General ($DG) Purchase Intent Mentions (green) vs company stock price

 

A few key takeaways:

  • Consumer Purchase Intent (PI) Mentions pulling back in late summer is unusual for this company
  • Stock near all-time highs as PI mentions slide provided a classic divergence opportunity.
  • Bet was not necessarily that Dollar General would miss Q3 numbers, but rather that the company’s performance wouldn’t support the high share price.
  • Dollar General is one of our best performing companies using PI data, historically:

 

LikeFolio data has been spot on for Dollar General historically

The Week Ahead

It’s nice to start out with a win, especially as our late-season performance continues to shine.  Now it’s time to turn to the week ahead.

With markets closed Wednesday, we are actually looking at 4-5 really solid earnings plays worth entering today… a surprisingly high number for this point in the earnings season!

Best of luck to all of us… let’s keep it going!

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