Wall Street Sees a 21% Upside to Dollar General (DG)

Dollar General Corporation (NYSE:DG) is one of the best stocks to buy according to Seth Klarman. As of December 12, the average price target for DG suggests a downside of a meager 0.11%; however, the Street high indicates an upside of 21%. As of the third quarter of 2025, Klarman owns 2.6 million shares of Dollar General valued at $275.6 million.

On December 5, Truist Financial analyst Scot Ciccarelli maintained a Hold rating on Dollar General Corporation (NYSE:DG) and raised the price target to $129 from $120. The updated price target is attributed to the company’s Q3 financial results, which showed $10.65 billion in sales, up 2.5% and in line with market consensus. While sales met street expectations, DG’s EPS of $1.28 topped Truist’s $0.96 EPS estimate.

According to Truist, Dollar General’s strong earnings were driven by reduced shrink, larger markups, and modest advantage from hurricane-related buying. The investment firm noted that Dollar General’s sales growth has returned to its earlier 2-3% pace after headwinds in 2023 and 2024.

The company’s better margins this year have been driven by diminished inventory, SKU optimization initiatives, and lower shrinkage, as per Truist. The firm reiterated its Hold recommendation, regardless of the improved numbers, as it sees tough margin comparisons next year.

While we acknowledge the risk and potential of DG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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