Analysts on Wall Street Lower Ratings for These 5 Stocks

01. Dollar General Corporation (NYSE:DG)

Price Reaction after the Downgrade: -19.16 (-12.15%)

On August 31, Dollar General Corporation (NYSE:DG), a significant player in the retail sector, underwent a substantial market transformation. This shift was initiated by a downgrade in its stock rating by Oppenheimer, a strategic decision that marked a noteworthy change in perspective regarding the company’s potential performance. Formerly characterized as an “Outperform,” indicating positive expectations for the stock’s potential, Dollar General Corporation (NYSE:DG) rating was revised to “Market Perform” by Oppenheimer. This adjustment signifies a more neutral viewpoint, suggesting that the stock’s growth trajectory might now align more closely with the prevailing market trends. The immediate market response was reflected in the stock’s current price of $138.50, experiencing a significant decrease of -12.2%.

Here is what Aristotle Atlantic Partners has to say about Dollar General Corporation (NYSE:DG) in its Q2 2023 investor letter:

“We sold our position in Dollar General, following a weaker-than-expected quarterly earnings report and a lowered earnings outlook. The company’s core consumer, while still employed, continues to be impacted by higher inflation. Additionally, we saw the negative impacts of lower-than-expected tax refunds and reductions in the Federal Supplemental Nutrition Assistance Program (SNAP). Dollar General remained committed to spending on customer experience and investing in price to help their customers through the tougher economic environment, as a result, reducing the earnings guidance by a greater amount than the sales reductions.”

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