Why Dollar General Corp. (DG) Surged On Thursday?

We recently published a list of These 10 Stocks Defied Thursday’s Slump. In this article, we are going to take a look at where Dollar General Corp. (NYSE:DG) stands against other stocks that defied Thursday’s slump.

The stock market ended in the red territory anew on Thursday following a fresh wave of uncertainties and reports of a looming government shutdown that rattled investors.

The Dow Jones dropped by 1.30 percent, while the S&P 500 and Nasdaq declined by 1.39 percent and 1.96 percent, respectively.

Meanwhile, investors took refuge in 10 companies, predominantly mining firms, to mitigate the risks from the macroeconomic threats.

In this article, we have listed the 10 strongest stocks and detailed the reasons behind their performance.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

A busy shopping aisle filled with discounted items in a retail store.

Dollar General Corp. (NYSE:DG)

Dollar General rose by 6.81 percent on Thursday to end at $79.95 each as investors digested the company’s earnings performance for the fourth quarter and full year of 2024.

In its latest earnings release, DG announced mixed results, with net income coming in 32 percent lower at $1.125 billion from $1.661 billion in 2023, while net sales inched up by 4.9 percent to $40.6 billion from $38.69 billion year-on-year.

Looking ahead, DG expects net sales to grow between 3.4 percent and 4.4 percent this year; same-store sales growth ranging from 1.2 percent to 2.2 percent, and diluted earnings per share of $5.1 to $5.8.

The company also reiterated plans to execute approximately 4,885 real estate projects this year, including opening approximately 575 new stores in the US and up to 15 new stores in Mexico, fully remodeling approximately 2,000 stores, remodeling approximately 2,250 stores through Project Elevate, and relocating approximately 45 stores.

Overall, DG ranks 4th on our list of stocks that defied Thursday’s slump. While we acknowledge the potential of DG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DG but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.