Dollar General Corporation : To new upward targets
By Sandra Pinturault
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$59.49 | $64 | $58.66 | +7.58% |
From a fundamental viewpoint, the group is in a good financial situation. Sales have increased by + 11% on the current year with a ROE of 20.1%, sign of a good capacity to generate profit.
Since several months, the stock has initiated a sharp bullish trend mainly due to strong fundamentals. The move could be continued, supported by the 20-day moving average, and return to its highest price levels.
Therefore, investors will benefit from the signal given by the crossing of the USD 59.7 resistance to take a long position in the stock. The objective will be set near USD 64 (swing effect). Once the position is opened, a stop loss should be fixed under effective entry point to guard against a trend reversal.