• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing This retail stock is ‘safe haven’ for recession: Piper Sandler’s Keith
Investing

This retail stock is ‘safe haven’ for recession: Piper Sandler’s Keith

by December 23, 2022
by December 23, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Dollar General Corp (NYSE: DG) stands to benefit if the U.S. economy slides into a recession next year, says Peter Keith. He’s the Senior Research Analyst at Piper Sandler.

Dollar General stock will benefit from the trade down

Despite remarkable inflationary pressures, consumers didn’t trade down this year because retailers announced discounts and promotions to deal with the inventory glut.

According to Keith, though, that could change in 2023. On CNBC’s “Closing Bell: Overtime”, he noted:

Companies like a Dollar General might benefit from the trade down. If consumers are feeling more strained, they want more value shopping, where might they go to save money? We think the dollar stores are a great place for that.

Earlier this month, the retail chain reported better-than-expected revenue for its third financial quarter. Dollar General stock is currently up about 5.0% year-to-date.

Dollar General stock is not very expensive to own

Keith likes Dollar General also because it’s trading in line with the average of its price-to-earnings multiple over the past five years – so, it’s not expensive per se. The analyst added:

Inventories are starting to clean up. We think they’re largely normalised in 2023. Trade down accelerates in our view, as jobless claims take off. So, DG we like a lot, it’s a high-quality name, a safe haven for the trade down environment.

He’s convinced that the Goodlettsville-headquartered firm will see a boost to its gross margins next year.

Keith has an “outperform” rating on the Dollar General stock. His price target of $288 a share translates to just over 17% upside from here.

The post This retail stock is ‘safe haven’ for recession: Piper Sandler’s Keith appeared first on Invezz.

You Might Also Like
  • 3 takeaways after Wednesday’s FOMC Minutes release
  • Cathie Wood remains convinced in long-term potential of Tesla stock
  • 3 strategies to buy the S&P500 index and how they performed in 2022
  • OptionNET Explorer (ONE) Software
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Star investor David Tepper is ‘leaning short’ on equities: here’s why
next post
Boohoo vs Asos: Which is the better UK e-commerce stock?

You may also like

Pro reacts to Musk selling another $3.6 billion of Tesla...

December 15, 2022

Protests erupt across China: are Chinese stocks still investable?

November 28, 2022

Buy to Open vs Buy to Close

April 18, 2023

Goldman Sachs Moves Euro Swap Trading Desk from London

November 30, 2022

How Investment Trading Can Help Grow Your Business

January 16, 2023

European Central Bank is in a critical phase in the...

December 1, 2022

Tesla’s stock price crashes, down -9% on missing 4Q2022 consensus

January 3, 2023

DocuSign stock jumped 15% in after-hours: here’s the catalyst

December 8, 2022

European Central Bank says Bitcoin is dead

December 1, 2022

Blackstone vs Blackrock: Better buy after a tough 2022

December 26, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,451 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    XPeng stock rises 48% from a...

    December 1, 2022

    3 reasons why the December NFP...

    January 7, 2023

    Wide, flat SPX Diagonal Spread

    January 16, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here