Jim Cramer’s List of Stocks that Finished Dead Last

3. Dollar General Corporation (NYSE:DG)

Number of Hedge Fund Holders: 42

Dollar General Corporation (NYSE:DG) operates as a discount retailer across various regions in the United States, including the southern, southwestern, midwestern, and eastern states. It provides an extensive range of products, catering to diverse consumer needs.

Its offerings include consumables such as cleaning supplies, paper goods, packaged foods, and perishables. Additionally, the company stocks a variety of snacks, health and beauty products, pet supplies, and tobacco.

Cramer mentioned that the stock was the fourth worst-performing one on the S&P 500. He added:

“Dollar General and Dollar Tree certainly haven’t distinguished themselves as real bargains when it comes to their stocks or their merchandise.”

Dollar General’s (NYSE:DG) primary customer demographic consists largely of households with annual incomes below $35,000, accounting for approximately 60% of its overall sales. This demographic has faced challenges due to rising inflation, which has impacted spending capacity.

Consequently, during the second quarter, the company reported a modest growth in same-store sales of just 0.5%. Operating profits experienced a significant decline of around 20%, leading to a drop in per-share earnings from $2.13 in the previous year to $1.70. Moreover, net income for the first half of 2024 decreased significantly to nearly $738 million, compared to $983 million during the same period last year.

Amidst these challenges, Dollar General (NYSE:DG) adjusted its sales projections for 2024. It lowered expectations for revenue growth from an initial forecast of 6% to 6.7% to a more modest range of 4.7% to 5.3%. Additionally, the outlook for same-store sales was revised downwards, with forecasted growth now estimated between 1% and 1.6%.