10 Oversold Large Cap Stocks To Buy Now

3. Dollar General Corporation (NYSE:DG)

Market Cap: $18.011 billion

FWD PE Ratio: 14.07

YTD Share Price Decline: ~42%

Number of Hedge Fund Holders: 42

Dollar General Corporation (NYSE:DG) operates as a neighborhood general store offering affordable products and services. As of August 2024, the company has 20,345 stores across the U.S. and Mexico, including Dollar General, DG Market, DGX, pOpshelf, and Mi Súper Dollar General locations. It is one of the oversold large-cap stocks to buy. The stores provide essential items such as food, health and wellness products, cleaning supplies, beauty products, and seasonal décor that feature both private-label and well-known brands like Coca-Cola, PepsiCo, Procter & Gamble, and Nestlé.

Dollar General (NYSE:DG) faced some challenges in the earlier half of the year as it faced softness in discretionary categories, like seasonal home and apparel, while June showed stronger sales compared to July. Around 60% of the company’s sales come from households that earn less than $35,000 a year, making this group the core of its customer base. This is why consumer sentiment was low, especially for low-income households, with many customers reporting financial strain due to inflation and rising costs.

For 2024, Dollar General (NYSE:DG) expects continued promotional pressure and financial difficulties for customers for the rest of 2024. It lowered its EPS guidance to $5.50 to $6.20. Despite these challenges, the company is focused on long-term plans, like opening new stores and making smart investments. Overall, Dollar General remains positive about the future, believing that its strategy will build customer loyalty, increase sales, and create value for shareholders over time.