10 Cheap Value Stocks to Invest In, According To Seth Klarman

5. Dollar General Corporation (NYSE:DG)

Number of Hedge Fund Holders: 45

Forward Price to Earnings Multiple: 11.10

Baupost Group’s Holdings: $194.83 Million

Dollar General Corporation (NYSE:DG) is a discount retailer that provides various merchandise products. Its stock took a dive in 2024, going down by 44%. The selloff came as the company grappled with inflationary pressures, weak consumer spending, and market share losses to other larger competitors.

While Dollar General Corporation’s (NYSE:DG) financial results were under pressure for the better part of last year, it has started showing signs of improvements. In its fiscal first quarter of 2025, revenue was up by 2.9% to $40.2 billion as earnings per share came in at $6.08, outperforming expectations. Dollar General has also started reporting improvements in in-store traffic as consumer spending power is boosted by cutting interest rates.

The company’s long-term outlook remains solid as it moves to improve price gaps compared to competitors such as Walmart. Management has also embarked on efforts to resolve supply chain issues and improve stock levels as one of the ways of fuelling store traffic levels. Dollar General Corporation’s (NYSE:DG) extensive network of stores in rural areas and underserved areas is also expected to benefit from the low interest rate environment.