After a nearly 20% drop over the past month, Dollar General (NYSE:DG) shares are up nearly 7.2% in the pre-market session today after the discount retailer announced the return of current Board member, Todd Vasos, as its CEO.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Vasos served as DG’s CEO from June 2015 to November 2022. Succeeding Jeff Owen, Vasos has agreed to lead the company once again for the foreseeable future. Commenting on the leadership transition, Michael Calbert, the Chairman of DG’s Board, noted, “At this time, the Board has determined that a change in leadership is necessary to restore stability and confidence in the company moving forward.”
In his previous stint as CEO, Vasos oversaw the expansion of DG’s store count by nearly 7,000 and a jump in the company’s market capitalization to $58 billion. Amid a challenging macroeconomic environment, the company’s share price has corrected by nearly 59% so far this year, taking its market capitalization to ~$22.3 billion.
Along with the leadership transition, DG also narrowed its financial expectations for Fiscal 2023. It now expects net sales growth to be in the range of 1.5% to 2.5%, versus the prior outlook between 1.3% and 3.3%. EPS for the year is anticipated to be between $7.10 and $7.60, compared to earlier expectations in the range of $7.10 to $8.30.
What is the Target Price for DG Stock?
Overall, the Street has a Moderate Buy consensus rating on Dollar General. The average DG price target of $144.71 implies a substantial 42.1% potential upside.
Read full Disclosure
