12 Best Retail Stocks to Buy According to Analysts

7. Dollar General Corporation (NYSE:DG)

On February 17, Dollar General Corporation (NYSE:DG) saw Guggenheim raise its price target to $165 from $140 while maintaining a Buy rating, citing an acceleration in top-line momentum that may signal the early stages of a sustained turnaround rather than a short-term margin recovery driven solely by shrink improvement. On February 6, UBS also raised its price target to $168 from $143 and maintained a Buy rating.

During the third-quarter 2025 earnings conference call, Dollar General Corporation (NYSE:DG) reported net sales growth of 4.6% to $10.6 billion, with same-store sales increasing 2.5%, driven primarily by higher customer traffic, while average basket size remained stable. Gross profit margin expanded 107 basis points to 29.9%, reflecting improved inventory markups and reduced shrinkage. Operating profit increased 31.5% to $425.9 million, and diluted earnings per share rose 43.8% to $1.28. For fiscal 2025, the company expects net sales growth of 4.7%–4.9%, same-store sales growth of 2.5%–2.7%, and EPS between $6.30 and $6.50. Capital expenditures are projected toward the lower end of the $1.3 billion to $1.4 billion range, with approximately 4,885 real estate projects planned, including 575 new U.S. stores and up to 15 new stores in Mexico. Margin expansion, accelerating earnings growth, and disciplined capital allocation suggest that operational initiatives are gaining traction, supporting a constructive view on sustained profitability recovery.

Dollar General Corporation (NYSE:DG), founded in 1939 and headquartered in Goodlettsville, Tennessee, operates a chain of discount retail stores across the United States and Mexico, offering everyday essentials and branded consumer products.