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Dollar General Corporation (DG)

Dollar General stock forecast: buy or sell

Close on Oct 23rd, 2020
$215.44 +0.52%
3 months performance
13.50%
Published: October 23rd, 2020 - 4.41pm EDT

Dollar General stock outlook

  • Dollar General stock scarcely moved 0.52% to close at $215.44 on the stock market today.
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $124.27. Up to date, price made a 73.36% profit since the beginning of this rally
  • Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, Midwestern, and eastern United States.

Please read:
The viewpoints contained in this article are personal and not recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the specific positions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for informational purposes only

Dollar General stock charts

Should I buy Dollar General stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $DG stock a buy?

In the current situation of Dollar General there is not any eligible buy setup. This doesn't mean we expect a selloff for $DG in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Dollar General stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. In the same way as when we have to buy shares, deciding when is appropiate to sell is not a capricious decision, and we must adhere our own trading style. When selling, as well as buying, detailed setups are very simple to follow and are only valid for selling shares in your porfolio, not for selling short Dollar General stock

A golden rule is that you should never mantain an operation that generates greater losses than those expected at the time of purchase. The timing to sell shares must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Dollar General stock?

In the current situation of Dollar General there is not any eligible sell setup, so Dollar General stock holders with operations in green can keep their positions

Analysts' recommendations to buy or sell Dollar General stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, just one brokerage rating was published for Dollar General

Dollar General ratings

Brokerage firmRating
Oct 9th, 2020
Wolfe Research Buy

Technical analysis

Dollar General stock started an uptrend last March, and grew an amazing 73.36%. During this uptrend, the price offered some entry points on the breakouts. Latest low was in early September, when price bounced at $190.44. Now, the price trades in a consolidation between its last top ($224.82) and its last bottom ($190.44)

SMAs overview

Moving averages are simple indicators for investors to detect stock direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

DG SMAs chart

Supports and resistances

Investors use supports and resistances to spot price points on a chart that may act as barriers, preventing the price of a stock to move in certain direction. A support level is a level where the price may find support as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue declining until approaching another support level. On the other side, resistances are where the price tends to find resistance as it rises. In the same manner, the price is more liable to "bounce off" at this level, and if it finally breaches this level, the price will climb more easily until it approaches the next resistance

The current resistance levels are:

  • R1: $224.82 (4.35% above)
  • The current supports are:

  • S1: $206.63 (-4.09% below)
  • S2: $194.14 (-9.89% below)
  • S3: $193.02 (-10.41% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. It is made up of three bands that are drawn superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price surpassed the upper band on October 13, the price dropped by 3.8%

    DG RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to chart the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI fluctuates from 0% to 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by investors

    The RSI dropped below the overbought level of 70 on October 16 after just crossing to the overbough zone for a single day (weak signal). The RSI value today was 53.22. Since that level was lost, Dollar General price dropped a 3.33%

    DG RSI chart

    Earnings and financials

    Dollar General Corporation ($DG) reported quarterly earnings of $3.12 per share in late August, significantly enhancing the analysts consensus estimate of $2.44 per share. This Q2 report represents an earnings surprise of 27.87%.

    Compared to the same quarter last year, EPS was $1.74, so posted EPS is a gain of 79.31%.

    Dollar General ($DG) posts quarterly earnings report on early next December. Market analysts analysts expect a per-share earnings of $2.36, that is a 24.36% lower than Q2. Revenue estimates are $8.2 billion.

    DG revenues and profits chart