Dollar General is a massive retail chain operator that offers daily necessities in stores across the U.S. at everyday low prices. Although it is more commonly known for selling everyday consumer goods, the company's recent announcement to establish itself as a health destination is a great initiative. And investors should be encouraged by this latest development. Dollar General operates over 17,266 stores in the U.S. Notably, this far exceeds the combined total U.S. stores of Target and Walmart.
From its first-quarter result, net sales for the quarter were $8.4 billion. Dollar General also posted diluted earnings per share of $2.82, an increase of 10.2% year-over-year. It also posted a net income of $677.7 million for the quarter. The company is off to a strong start for its fiscal 2021 and has exceeded expectations. It also sees strong underlying performance across its business. Besides, Dollar General reported that it benefitted from the most recent round of government stimulus payment. Also, it has raised its financial outlook for fiscal 2021. All things considered, is DG stock a top retail stock to buy?
Target is one of the largest retailers in the U.S. and is a component of the S&P 500 Index. The company boasts over 1,900 stores in the U.S. and has over 40 distribution centers. Impressively, the company claims that 75% of the U.S. population lives within 10 miles of a Target store. Target has been one of the few retail companies that weathered through the pandemic exceptionally well.
From its first-quarter fiscal, the numbers reported were enough to impress any investor. The company's comparable sales came in 22.9% higher year-over-year. Digital comparable sales grew by a commendable 50%, on top of a 141% growth a year ago. First-quarter GAAP earnings per share were $4.17, skyrocketing by 643.2% compared to a year ago. These figures are certainly impressive, but Target is showing no signs of slowing down. In fact, it plans on investing $4 billion annually to expand offerings through its delivery and pick-up services, making it easier to reach its customers. Given all of this, will you consider adding TGT stock to your watchlist?
Colgate-Palmolive is possibly one of the best consumer staples stocks in the stock market. Clearly, with coronavirus cases still high in many countries, there's never been a more important time for self-care. That said, it is safe to say that no one is going to stop brushing their teeth because of a pandemic. Apart from that, investors love CL stock because it has good regional diversification. Its key business segments include home care, personal care, oral care, and pet nutrition, and some of these are seeing stronger demands during the pandemic.
It is also reassuring that the company reported first-quarter revenue and profit that topped expectations. Sales rose 6.0% to $4.34 billion, exceeding analysts' consensus of $4.27 billion. Besides, its earnings per share of $0.80 narrowly beat the consensus of $0.79. Many investors are turning to CL stock because of its strong track record in paying a dividend. If you're an income investor, CL stock would stand out as one of the best dividend stocks to buy. The company made its first payout in 1895 and has begun increasing its dividend every year since 1963. Considering all these, does CL stock have a place in your portfolio?
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