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Dollar General Slips as RBC Sees Slowdown Ahead

Published 2021-05-12, 11:22 a/m
© Reuters.
DG
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By Christiana Sciaudone

Investing.com -- Dollar General (NYSE:DG) slipped 3% after RBC downgraded the stock, expecting slow growth ahead. 

"While we believe the company continues to execute at a high level, the improving employment environment may reduce trade-down/in activity even as rising food and gas prices squeeze their existing customers," analyst Scot Ciccarelli said in a note, according to StreetInsider. "As stimulus benefits fade, we think Dollar General’s growth may slow more/faster than some of our other retailers, which may make it difficult for DG shares to outperform."

Ciccarelli lowered Dollar General to a neutral-equivalent from outperform. Shares have three holds, 11 buys and no sells, according to data compiled by Investing.com.

The pandemic helped sales rise to records for the company. Shares have fallen about 6% after hitting a record in October.

 

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