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Dollar General (DG) Price Targets Raised to $165 and $168 on Turnaround Momentum

We recently published an article titled 12 Best Retail Stocks to Buy According to Analysts.

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.

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 Data Storage Stocks to Buy Right Now and 12 Best Retail Stocks to Buy According to Analysts

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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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