Dollar General (DG) it is expected to deliver Q1 in-line with Street estimates and potentially issue more conservative guidance amid the current economic environment facing consumers, Oppenheimer said Friday.
Dollar General is set to report Q1 results on Tuesday.
Shares of Dollar General are down 17% year-to-date versus a 10% gain in the S&P 500. For long-term investors, this offers an attractive buying opportunity, though volatility is likely to persist with more challenging comparisons just ahead, according to the note.
The brokerage expects Q1 results to be in line with consensus forecasts for EPS of $1.89 and 2% comparable sales growth, with higher energy prices potentially limiting upside in the quarter.
Given new cost headwinds and rising pressures on the lower-end consumer, the brokerage believes Dollar General could guide toward the lower end of its full-year 2026 outlook.
Oppenheimer adjusted its forecast to reflect this environment as well as a higher tax rate in 2027. Its base case still assumes double-digit EPS growth in 2027, the brokerage said.
Oppenheimer kept an outperform rating on Dollar General with a price target of $150.
Price: $109.27, Change: $-0.63, Percent Change: -0.57%