Copyright benzinga
Analysts are saying that Dollar General could fall by 2030. Bullish on DG? Invest in Dollar General on SoFi with no commissions. If it’s your first time signing up for SoFi, you’ll receive up to $1,000 in stock when you first fund your account. Plus, get a 1% bonus if you transfer your investments and keep them there until December 31, 2025. For Dollar General Corp. (DG), its affordability is a strength and weakness. Low prices bring more people to the company’s discount stores, but it also translates into lower profit margins. Rising same-store sales have helped the company outperform most stocks this year, but slow growth rates are a long-term concern. In this article, we’ll look at Wall Street sentiment for DG, multiyear price forecasts, and the key factors that are playing a critical role in the stock’s path going forward. Current Stock Overview Market Cap: $21.72 billion Trailing P/E Ratio: 18.78 Forward P/E Ratio: 14.71 1-Year Return: 23% 2025 YTD: 30% Dollar General reported 2.8% year-over-year same-store sales growth in Q2. Same-store sales indicate higher foot traffic, the average customer spending more on each visit, or both. Rising same-store sales is a positive, and 5.1% net sales growth across the board made it even better. However, those growth rates are low and may limit DG’s ability to rally from current levels. Furthermore, Dollar General has low profit margins without many options for boosting them. The retailer is known for its low prices, which doesn’t give it much pricing power. Inflation and tariffs are real concerns that can further shrink margins and put more pressure on the business. Dollar General has regularly paid dividends to its investors, but it hasn’t raised its payout since 2023 and has $6.7 billion in total current liabilities. Although the company has $8.4 billion in total current assets, that includes $6.6 billion of inventory. A low 0.27 quick ratio indicates Dollar General would struggle to pay debt if inventory sales stalled. DG has a consensus Buy rating from 27 analysts, according to Benzinga. The average price target is $116.48 per share, which suggests a modest upside from current levels. The highest price target is $170, and the lowest is $80. The three most recent ratings suggest a near-term average target of $113.67, suggesting a 15% upside. Quick Snapshot Table of Predictions & Methodology for Forecasting Bull & Bear Case Sales have risen at Dollar General stores, but balance-sheet weakness is a concern. Same-store sales have increasedDollar General offers low prices, which makes it more resistant to economic slowdownsThe retailer has more than 20,000 stores in 48 states, giving it a strong moat over rivals The company has low margins without many opportunities to increase its profitsDollar General has very little pricing power because of its low-pricing modelA low quick ratio and a lack of dividend hikes since 2023 suggest a weak balance sheet Stock Price Prediction for 2025 CoinCodex doesn’t project much movement for the stock in 2025, with a slight upside more likely than a slight downside. DG isn’t known for significant growth or sharp declines, so its rise may hold steady in the low single digits. Stock Price Prediction for 2026 CoinCodex anticipates DG stock gaining momentum in 2026. The retailer may attract more shoppers during an economic slowdown while smoothly navigating tariffs and inflation. It’s also possible that tariff fears are overblown, which would be a positive. Stock Price Prediction for 2030 CoinCodex projects a long-term decline for Dollar General stock. The company’s balance sheet may eventually catch up to it, especially if inventory takes longer to sell. Inflation and tariffs can also put more pressure on margins and force the retailer to raise prices. If Dollar General raises its prices too high, it can damage its standing as an affordable option, which could hurt same-store sales and revenue growth. Higher prices can also slow down the movement of inventory, which would put more pressure on its balance sheet. Investment Considerations Dollar General’s focus on affordability has turned it into a top discount retail chain with more than 20,000 stores, but limited pricing power, inflation, and tariffs can put more pressure on profit margins as the company navigates a low 0.27 quick ratio. Dollar General’s lack of dividend growth is a red flag that may indicate more financial hardships in the future. Dividend value investors may view it as a bounceback candidate that has a decent 2.39% yield. Frequently Asked Questions
