5 Most Undervalued Retail Stocks to Buy According to Hedge Funds

4. Dollar General Corporation (NYSE:DG)

Number of Hedge Fund Holders: 59
P/E Ratio as of January 23: 22.48x

Return since January 23: -25.6%

Dollar General Corporation (NYSE:DG) is the leading discount retailers in the US. The company provides a broad selection of merchandise, such as consumable items, seasonal items, home products and apparel.

Dollar General Corporation (NYSE:DG) has announced a partnership with Ibotta. This will extend the company’s financial services and provide cash back options to all consumers.

Its Q3 2022 net sales saw an increase of 11.1% to $9.5 billion against $8.5 billion in Q3 2021. This growth stemmed from positive sales contributions from new stores and improvement in same-store sales. The company saw same-store sales growth of 6.8% against Q3 2021, supported principally by higher average transaction amount, and modest rise in customer traffic.

Dollar General Corporation (NYSE:DG) expects same-store sales growth of approximately 6% – 7% for Q4 2022. This should result in growth in the upper end of its previously expected range of 4.0% – 4.5% for the full year. The company expects diluted EPS of $3.15 – $3.30 for Q4 2022.

Hedge fund sentiment for Dollar General Corporation (NYSE:DG) spiked in the third quarter of 2022. Of the 920 funds tracked by Insider Monkey, 59 funds reported having stakes in Dollar General Corporation (NYSE:DG), compared to 51 funds in the previous quarter.

Telsey Advisory Group covered the shares of Dollar General Corporation (NYSE:DG) and reduced its price objective from $285.00 to $270.00, giving an “Outperform” rating on the stock on December 2.