Movement Alert|Dollar General Rises 5.99% in Regular Trading, UBS Bullish on Q1 Results Combined with Dollar Tree Surge Lifting Sector Sentiment

Market Focus
May 29

On May 29, Dollar General rose 5.99% in regular trading, trading at $110.64/share, with trading volume of $232 million. The rally was driven by a combination of a bullish UBS research note ahead of the June 2 earnings release and a significant sector tailwind from peer Dollar Tree's 17.28% surge on the same day.

UBS stated that Dollar General is expected to meet the market's bar for 2% comparable sales growth in Q1, while noting the quarter likely started slow due to early-period storm impacts. The firm anticipates the company will reiterate its full-year comparable sales guidance of 2.2% to 2.7% and could raise the low end of its EPS guidance from $7.10 to $7.35 as a show of conviction. UBS also expects Dollar General to reiterate its long-term operating margin target of 6% to 7%, with the firm forecasting 5.3% this year. Consensus estimates project Q1 revenue of $10.823 billion, up 4.96% year-over-year, and adjusted EPS of $1.89, up 27.58%.

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