Focus Stock of the Day (DG)

in #money5 years ago

Specialty discount retailer that competes against Walmart

American's love a good bargain. When most think of bargains they look to the power and efficiency of Walmart for everyday low cost shopping. There is another retailer that has a distinct advantage for low cost shoppers.

Dollar General is the largest small format retailer in the U.S., with more than 15,000 stores in 44 states where it offers convenience and low prices. "We went where they ain't offered 7-Eleven convenience at Walmart prices." says CEO David Perdue. Most store locations are in small towns with small populations where the big box stores avoid.

Dollar General is a very efficient. The typical Dollar General store costs about $250,000 to build. This allows the company to generate some of the highest earnings before interest, taxes, depreciation, and amortization ("EBITDA") per square foot of retail space in the industry.

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Shares are a good value around $140 per share. Take a look today.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.

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