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Dollar General Corporation (DG): Services' Featured Underperformer Of The Day

Tickers in this article: DG

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model .

Dollar General Corporation ( DG) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole was unchanged today. By the end of trading, Dollar General Corporation fell 51 cents (-1%) to $49.85 on heavy volume. Throughout the day, 7.5 million shares of Dollar General Corporation exchanged hands as compared to its average daily volume of 4.8 million shares. The stock ranged in price between $49.76-$50.58 after having opened the day at $50.58 as compared to the previous trading day's close of $50.36. Other companies within the Services sector that declined today were: Cache ( CACH), down 17.4%, ENGlobal Corporation ( ENG), down 16.5%, J.C. Penney ( JCP), down 12.2%, and Mistras Group ( MG), down 10.9%.

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Dollar General Corporation, a discount retailer, engages in the provision of various merchandise products in the United States. Dollar General Corporation has a market cap of $16.49 billion and is part of the retail industry. The company has a P/E ratio of 17.7, equal to the S&P 500 P/E ratio of 17.7. Shares are up 14.2% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Dollar General Corporation a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Dollar General Corporation as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Destination XL Group ( DXLG), up 41.1%, Casual Male Retail Group ( CMRG), up 41.1%, Daegis ( DAEG), up 18.2%, and Pizza Inn Holdings ( PZZI), up 15.4%, were all gainers within the services sector with PetSmart ( PETM) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).