I've recently become interested by Dollar General. The stock has dropped a lot after mixed results. As it looks, Dollar General shouldn't grow that much this year and investors don't like that.
The stock went from about 250$ one year ago to about 125$ these days. And the PE ratio is currently about 15 which is low for such a defensive industry (immuned to recessions).
All the dollar stores are usually sold for a PE of 20-25 and even above (Five Below is much more expensive). That's mostly why I chosed to buy some shares of Dollar General. Of course, buying a lot of shares for a significant portion of a portfolio is rarely a good idea with a new stock, but with 2-3% of my portfolio, I think that it's a rational stake for a very strong and defensive stock.
However, the debt level is a little high. But who cares. We'll all die someday and that kind of information won't matter anymore at this fatal moment.
