Dollar General’s third-quarter revenue is forecast at $9.43 billion, which would be flat sequentially and up 10.7% year over year. Adjusted earnings per share (EPS) are forecast at $2.54, down 14.7% sequentially but 22.1% higher year over year. For the full 2023 fiscal year ending in January, Dollar General is expected to report EPS of $11.58, up 13.9%, on sales of $37.92 billion, up 10.8%.
Its shares trade at 21.6 times expected 2023 EPS, 19.6 times estimated 2024 earnings of $12.75 and 17.4 times estimated 2025 earnings of $14.32 per share. The stock’s 52-week trading range is $183.25 to $262.20. Dollar General pays an annual dividend of $2.20 (yield of 0.86%). Total shareholder return for the past year is 11.6%.
Kroger
Grocery store operator Kroger Co. (NYSE: KR) has added more than 15% to its share price over the past 12 months. Until the company announced a $24.6 billion merger with rival Albertsons, the stock was trading nearly flat with its year-ago price. Compared to its 52-week high posted in early April, the stock has dropped by around 22%.
That high was posted just as inflationary worries and inventory issues rattled virtually every retailer. Kroger also reported fairly weak first-quarter results in early May, including a margin decline of 26 basis points. The company turned that around in the second quarter, and investors (75% of which are institutions) will be watching margins closely.
Of 21 analysts covering the stock, 12 rate it at Hold. Seven have a Buy or Strong Buy rating, and two have Sell or Strong Sell ratings. At a share price of around $49.00, the upside potential based on a median price target of $51.00 is 4.1%. At the high price target of $75.00, the upside potential is 53%.
Fiscal third-quarter revenue is forecast at $33.92 billion, down 2.1% sequentially and up 6.5% year over year. Adjusted EPS are tabbed at $0.81, down 10.1% sequentially and up by 3.8% year over year. For the full 2023 fiscal year ending in January, Kroger is expected to post EPS of $4.09, up 11%, on sales of $148.15 billion, up 7.4%.
The stock trades at 12 times expected 2023 EPS, 11.7 times estimated 2024 earnings of $4.18 and 11.4 times estimated 2025 earnings of $4.29 per share. The stock’s 52-week range is $40.18 to $62.78. Kroger pays an annual dividend of $1.04 (yield of 2.12%). Total shareholder return for the past year is 18%.
Originally published at 24/7 Wall St.
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