5 Best Counter Cyclical Stocks to Buy Now

2. Dollar General Corporation (NYSE:DG)

Number of Hedge Fund Holders: 51     

Dollar General Corporation (NYSE:DG) is a discount retailer that provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It is one of the premier counter cyclical stocks to invest in. On October 12, according to a report from Placer.ai, Dollar stores are expected to see increased visits throughout the holiday shopping season as investors control spending. 

On September 16, JPMorgan analyst Matthew maintained an Overweight rating on Dollar General (NYSE:DG) stock and raised the price target to $294 from $287. 

At the end of the second quarter of 2022, 51 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Dollar General Corporation (NYSE:DG), compared to 53 in the previous quarter worth $2.25 billion.

In its Q2 2022 investor letter, Aristotle Capital Management, LLC, an asset management firm, highlighted a few stocks and Dollar General Corporation (NYSE:DG) was one of them. Here is what the fund said:

“Dollar General Corporation (NYSE:DG) contributed to performance in the second quarter following the report of first quarter earnings that were above expectations. Strength in the second quarter was driven by better-than-expected sales of consumable items. Guidance for the remainder of the year was increased. In addition to solid earnings, forecasts for the increasing expectations of a recession drove positive sentiment towards consumer discretionary companies with more predictable revenue like dollar stores.”