10 Best Department Store Stocks to Invest in

7. Dollar General (NYSE:DG)

Number of Hedge Fund Holders: 53

Dollar General (NYSE:DG) is a retailer that offers an elaborate array of merchandise in its stores, including consumables, beverages, seasonal items, and more. Its merchandise collection includes its own private brands and brands from manufacturers.

In a report released on March 14, Robert Ohmes from Bank of America Securities reiterated a Buy rating on Dollar General (NYSE:DG), with a price target of $90.00. The analyst gave his rating due to the company’s positive outlook amid elevated expenses in 2025. The company exhibited resilience by exceeding earnings expectations in fiscal Q4 2024. Adjusted EPS reached $1.68, surpassing the anticipated $1.50. This was attributed to a 1.2% increase in comparable sales, supported by ticket growth.

The analyst also said that Dollar General (NYSE:DG) is on the path to attaining a 6%-7% operating margin by 2028-2029, up from the current forecast of approximately 4.6% for 2025. This bullish outlook is supported by strategic initiatives such as DG Media, an increase in damages management, and a bounce back to pre-pandemic shrink levels. In addition, Dollar General’s (NYSE:DG) digital expansion and ‘Back to Basics’ initiatives are also factors behind the analyst’s bullish sentiments, as they are expected to improve operational efficiency and productivity, supporting long-term growth and market share gains. The company ranks seventh on our list of the 10 best department store stocks to invest in.