MENU
Go to the list of all blogs
Vitalii Liubimov's Avatar
published in Blogs
May 26, 2020

Dollar General vs. Dollar Tree: Which One Looks Better Ahead of Earnings?

Deep discount retail chains Dollar General (NYSE: DG) and Dollar Tree (Nasdaq: DLTR) are both set to release fiscal first quarter earnings results before the market opens on Thursday, May 28. Let's break down the two companies with how the fundamental and technical indicators look ahead of those earnings reports.

Looking at the fundamental ratings from Tickeron, we see that the companies have similar ratings in three categories, but Dollar General scores much better when it comes to the Profit vs. Risk Rating and it also scores better in the P/E Growth Rating category.

Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points refers to the least successful stocks for that industry.

Dollar Tree's Valuation (68) in the Discount Stores industry is in the same range as Dollar General (77). This means that the two stocks are priced similarly in terms of the valuation based on price-t0-earnings, price to book, price to sales, and projected growth (PEG ratio).

Dollar General's SMR Rating (48) is in the same range as Dollar Tree's (53). This means the companies have seen similar sales growth, similar return on equity readings and profit margins.

Dollar General's Price Growth Rating (41) in the Discount Stores industry is in the same range as Dollar Tree (54). This means that stock grew similarly at similar rates over the last 12 months.

Dollar General's P/E Growth Rating (20) is significantly better than Dollar Tree's (49). This means that Dollar General’s P/E growth has been better than Dollar Tree's over the last 12 months.

Dollar General's Profit vs Risk Rating (2) is significantly better than the same rating for Dollar Tree (91). This is a very wide discrepancy and suggests that Dollar General is a better investment right now.

The overall fundamental ratings tend to favor Dollar General over Dollar Tree. Looking at the AI predictions for each stock we see that both generated signals four days ago, but the signal for Dollar Tree was bearish and the signal for Dollar General was bullish.

The predictions go along with what the stocks have done over the past year. From May 2, 2019 through May 22, 2020, Dollar General is up 47.91% while Dollar Tree is down 17.95%. If we look at the weekly charts for the two stocks we see that Dollar General has doubled in price over the last two years, but the stock is also overbought based on its weekly stochastic indicators.

Dollar Tree is actually lower than where it was two years ago, but it was higher in the middle. The stock traded between $80 and $90 for most of Q4 2018 and then rose to almost $120 in October 2019 before falling for the last eight months.

What's really concerning about Dollar Tree's chart are the big drawdowns in May '18, August '18, and November '19 were all the result of earnings announcements. This signifies that the stock has a propensity for gapping lower after earnings reports.

Dollar Tree did just move back above its 13-week moving average and that could be a good sign for the stock. If we look at where the technical analysis indicators are for both stocks, we see that there are more positive results for Dollar Tree than Dollar General.

The table above shows that the AROON Indicator, MACD, Momentum Indicator, and Moving Averages have all signaled bullishly for Dollar Tree and there haven't been any bearish signals from the technical indicators. For Dollar General, there is only one bullish signal (Momentum), but three bearish signals from the Stochastic readings, MACD, and the Bollinger Bands.

Taking all of this in to account, a slight

Based on the AI signals and the fundamental indicators, I would have to give the edge to Dollar General. There is also the matter of Dollar Tree falling sharply after three different earnings reports over the last few years.

Related Ticker: DG

DG in +6.01% Uptrend, advancing for three consecutive days on March 27, 2025

Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where DG advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on March 06, 2025. You may want to consider a long position or call options on DG as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for DG just turned positive on March 07, 2025. Looking at past instances where DG's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .

DG moved above its 50-day moving average on March 05, 2025 date and that indicates a change from a downward trend to an upward trend.

The Aroon Indicator entered an Uptrend today. In of 218 cases where DG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The 10-day RSI Indicator for DG moved out of overbought territory on March 28, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where DG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

DG broke above its upper Bollinger Band on March 27, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.609) is normal, around the industry mean (7.863). P/E Ratio (17.207) is within average values for comparable stocks, (38.002). Projected Growth (PEG Ratio) (1.704) is also within normal values, averaging (2.635). Dividend Yield (0.027) settles around the average of (0.026) among similar stocks. P/S Ratio (0.476) is also within normal values, averaging (1.321).

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 60, placing this stock worse than average.

Notable companies

The most notable companies in this group are Walmart (NYSE:WMT), Costco Wholesale Corp (NASDAQ:COST), Target Corp (NYSE:TGT), Dollar General Corp (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Big Lots, Inc. (OTC:BIGGQ).

Industry description

Companies in the discount stores industry specialize in offering substantial discounts on a vast array of retail products. Some companies in this industry also operate general merchandise warehouse clubs. Products sold at discount stores are typically similar to those of any department store, but the pricing of the goods is generally much lower (and hence the name “discount”). Think Dollar General Corporation, Dollar Tree, Inc. and Five Below, Inc. Many discount stores target low-income households and/or price-sensitive consumers as their potential market. Discount stores’ profitability could hinge on factors like competitive pricing, sufficient locations, healthy revenue per square foot, and effective advertisement. These store operators could have an edge over other retailers during financial crises or recessions, when many consumers could be looking for less expensive alternatives.

Market Cap

The average market capitalization across the Discount Stores Industry is 84.73B. The market cap for tickers in the group ranges from 1.78K to 682.63B. WMT holds the highest valuation in this group at 682.63B. The lowest valued company is TUEMQ at 1.78K.

High and low price notable news

The average weekly price growth across all stocks in the Discount Stores Industry was 3%. For the same Industry, the average monthly price growth was 2%, and the average quarterly price growth was -6%. DLTR experienced the highest price growth at 8%, while TGT experienced the biggest fall at -4%.

Volume

The average weekly volume growth across all stocks in the Discount Stores Industry was 37%. For the same stocks of the Industry, the average monthly volume growth was 22% and the average quarterly volume growth was 100%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 52
P/E Growth Rating: 51
Price Growth Rating: 55
SMR Rating: 54
Profit Risk Rating: 60
Seasonality Score: -25 (-100 ... +100)
View a ticker or compare two or three
DG
Daily Signalchanged days ago
Gain/Loss if bought
Show more...
Ad is loading...
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

an operator of retail stores

Industry DiscountStores

Profile
Fundamentals
Details
Industry
Discount Stores
Address
100 Mission Ridge
Phone
+1 615 855-4000
Employees
185800
Web
https://www.dollargeneral.com
Ad is loading...
"🚀 PHAXIAM Therapeutics SA Skyrockets +18.82%! Dive into this biotech penny stock's stellar week and the industry's broader movements. 📈🔬
Explore annualized returns of +110% for Day Traders and +50% for Swing Traders using Price Action Trading Strategies (TA&FA) on popular managed healthcare stocks like $BIOS $CI $CNC $ELV $HUM $MOH $UNH. Stay updated on the 1-week change of +3% in this dynamic market.
The ethanol industry encompasses a diverse range of business activities, primarily focusing on the production of ethanol and sugar. Beyond these core products, companies within this theme also engage in the development of related assets, such as fuel storage tanks.
Cisco Systems set to soar! 🚀 A.I. predicts +4% growth in the coming month. Is CSCO the next big move in your portfolio? 📈💰
#trading
The Office Equipment/Supplies sector has emerged as a standout performer in recent times, posting an impressive 6.13% increase in its performance over the past week. This surge in performance is supported by a group of tickers, including $ACTG, $SCS, $HNI, $EBF, and $ACCO, which have collectively displayed a positive outlook. In this article, we will delve into the theme of this sector and analyze the group of tickers within it that are driving this positive momentum.
"IBM Skyrockets: +15.54% Quarterly Jump! Dive into the data behind this tech titan's remarkable rally. 📈🚀"
#investment#trading
The pharmaceutical sector is known for its dynamic nature, with companies often experiencing rapid shifts in performance and sentiment. In the past week, pharmaceutical companies, as represented by a group of tickers including RPRX, CALT, INZY, and HRMY, have seen a noteworthy increase in performance, surging by +3.13%. In this article, we will delve into the details of this trend, explore key indicators, and assess the outlook for these companies.
The term 'challenging disorders' envelops a vast expanse of the healthcare sector, extending from medical devices, facilities to biotechs, and pharmaceutical firms.
The ocean transportation sector has been making waves recently, experiencing a significant performance boost of +3.74% over the past week. In this article, we'll delve into the theme and explore the key tickers within this sector, shedding light on their market capitalization, recent price movements, volume trends, and fundamental analysis ratings.
Forest products encompass materials harvested from forestry intended for direct utilization or commercial activities.
The toy industry has seen some significant ups and downs in recent times, with a cluster of notable companies taking center stage in this exciting and ever-evolving market. In this article, we delve into the recent performance of select toy companies, examining key indicators and trends that have shaped their stock movements.
Dive into the dynamics behind the recent 2.68% rise in the Wholesale Distributors sector. With standout performers like $GIC, $POOL, $SITE, $FERG, and $CNM, we dissect the market movements and pivotal factors driving this uptrend. Read on to stay ahead!
🚀 Biocept (BIOC) surges +51.63% in a month! Amid industry downtrends, BIOC shines. What's next for this penny stock? 📈
#latest#investment
The aluminum construction companies have experienced a significant boost, with the segment seeing a +11.13% increase in performance over the past week. This growth is largely driven by the rising demand for lightweight materials, particularly in the automotive sector, where aluminum is being widely adopted to improve fuel efficiency. The aluminum industry plays a vital role in the U.S. economy, generating approximately $71 billion annually in direct economic impact, according to The Aluminum Association.
Unlock the potential of AI-powered swing trading with robots designed to track dips in top S&P 500 stocks. Whether you're a beginner or experienced trader, these tools help manage up to $20k per position, balancing risk and reward with advanced algorithms and market insights. Discover how to maximize returns in volatile markets!
Discover Tickeron's new AI-driven trading bots designed for high-volatility markets and impulse price action. Leveraging Financial Learning Models (FLMs) and technical analysis, these bots optimize trades, offer a 70% win rate, and execute strategies for day traders focused on fast market moves.
The Diesel Companies segment has displayed a notable increase of +9.44% in performance over the past week. This uptick highlights a positive trend in the sector, encompassing companies involved in the manufacturing of diesel vehicles and the distribution of transportation fuels.
The medical companies segment has experienced a notable increase in performance, recording a weekly gain of +3.53%. This sector encompasses companies involved in the production and supply of pharmaceuticals and essential medical products, catering to a broad spectrum of healthcare needs. Their product offerings include surgical apparel, gloves, hospital furniture, fluid management solutions, and specialized equipment for cosmetic and surgical procedures.
Tickeron launches AI-powered Stock Picker robots to assist hedge fund managers with sector rotation, growth-focused small-cap stocks, and strategic risk management. Using proprietary FLMs, Stock Pickers offer quant-driven signals and adaptive strategies for long-term growth and investment
Tickeron unveils an intuitive AI trading bot interface, offering tailored strategies for day, swing, and trend traders. From beginners to pros, discover tools designed to optimize trading precision, adapt to market volatility, and provide hedge fund-level insights for smarter investments.
#latest#popular#trading