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Bernstein Sees 2026 Favoring Higher-Income Shoppers, Boosts Dollar General (DG) Target

Dollar General Corporation (NYSE:DG) is included among the 13 Best Consumer Staples Dividend Stocks to Invest in Now.

On January 5, Bernstein raised its price target on Dollar General Corporation (NYSE:DG) to $150 from $141 and kept an Outperform rating. From a macro standpoint, the firm expects middle- to high-income consumers to be in a stronger position in 2026. Persistent inflation and a cooling labor market have continued to pressure the real spending power of lower-income shoppers. At the same time, incremental tax refunds tied to the OBBBA are expected to flow more heavily toward middle- and high-income groups, Bernstein said.

Bank of America analysts also see room for Dollar General Corporation (NYSE:DG) to gain traction, especially as larger-than-expected tax refunds could support results in the first quarter. In a January 2 report cited by CNBC, the bank said it is leaning toward stocks trading at fair value or at a discount, even as the S&P 500 becomes more expensive. In a recent research note, BofA pointed out that many stocks are now trading at a premium, making attractive opportunities harder to find. The bank said Dollar General’s efforts to streamline operations and rein in inventory are starting to show results. Those changes should support margins and lift the bottom line in the coming quarter. BofA has a Buy rating on the stock with a $160 price target. Shares are up more than 100% over the past 12 months.

Dollar General Corporation (NYSE:DG) operates as a discount retailer, selling a mix of consumables, seasonal goods, home products, and apparel.

While we acknowledge the potential of DG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DG and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Income Stocks to Buy Now and 20 Best Performing Dividend Stocks in 2025

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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