5 Best Seasonal Stocks to Buy Now

3. Dollar General Corporation (NYSE:DG)

Number of Hedge Fund Holders: 51     

Dollar General Corporation (NYSE:DG), a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. The firm is among the best seasonal stocks to invest in. The company is among a handful of established retailers in the US that tend to do well during recessions. Amid the present macro backdrop, the firm has a chance for top-line growth and gross margin expansion as consumables take priority over discretionary purchases with household spending, per investment advisory Guggenheim. 

On September 16, JPMorgan analyst Matthew Boss maintained an Overweight rating on Dollar General Corporation (NYSE:DG) stock and raised the price target to $294 from  $287, noting the consumer and retail calmness of the firm regarding the second half of 2022. 

At the end of the second quarter of 2022, 51 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Dollar General Corporation (NYSE:DG), compared to 53 the preceding quarter worth $2.25 billion.

In its Q3 2021 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Dollar General Corporation (NYSE:DG) was one of them. Here is what the fund said:

“Executive Summary:

At LRT Capital Management we are continuously searching the market for great investment opportunities. Our favorite finds are companies with moats and growth opportunities that justify a higher price than what the stock is trading for. One of our holdings (approximately 1.5% of our long exposure) is Dollar General (DG), so today, we wanted to tell you a bit about this great company.

Company Overview:

Dollar General Corporation (NYSE:DG) is a discount retailer with the largest brick-and-mortar presence in the United States by store count. The company’s largest concentration of stores can be found in the southern, southwestern, midwestern, and eastern parts of the United States.10 Dollar General was founded in 1939 by J.L. Turner, who originally named the company “J.L. Turner and Son, Wholesale”.  As the name suggests, the company began its life as a wholesaler, but quickly turned to a retailer of general store goods. By the early 1950s, the company had annual sales of $2 million per year,12 which is the equivalent of $22.95 million in 2021 dollars when adjusted for inflation (…read more)