vendredi 8 septembre 2023

Dollar General (DG)

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. 


1 commentaire:

  1. Dollar General tanked, Dollar Tree tanked. If Dollarama tanks in a similar fashion after tomorrow's earnings I'd be interested in buying. It is part of my personal fund list, a list of companies that I use or shop at.