10 Most Oversold S&P 500 Stocks in 2024

5) Dollar General Corporation (NYSE:DG)

% Decline In 1 Year: ~45%

Number of Hedge Fund Holders: 45

Dollar General Corporation (NYSE:DG) is a discount retailer, which is engaged in providing various merchandise products. The company’s decline in the stock price reflects the broader market volatility and pressures in the overall retail sector, as it witnesses a complex mix of inflationary challenges, disruptions in the supply chain, and shifting consumer spending patterns. However, there is much optimism around Dollar General Corporation (NYSE:DG)’s stock after it announced its Back to Basics plan, which focuses on a wide range of factors.

These include better management of inventory and improved in-stock levels. Dollar General Corporation (NYSE:DG) continues to prioritize keeping the checkout area fully staffed and remains focused on eliminating stock-keeping units in a bid to reduce labor and inventory.  The company has been emphasizing improving new store productivity and reevaluating its net unit growth outlook. Dollar General Corporation (NYSE:DG)’s efforts to reduce shrinkage and optimize inventory management can result in meaningful improvements in gross margins.

Dollar General Corporation (NYSE:DG)’s focus on improving price gaps versus competitors such as Walmart might attract more price-sensitive shoppers and fuel market share gains in key product categories. The company believes that the balance of new store growth and a significantly increased number of projects affecting its mature store base will further strengthen the company as a critical partner to communities in rural America.