Shares of Family Dollar (NYSE:DG) soared by 4% last week thanks to a strong earnings report. All I can say is, “Duh!” The consumer may be doing well, but not that well. In other words, the value of lower prices and discounts will rule the day in the competitive retail space.
Dollar General and Family Dollar (NYSE:FDO) have done well since the start of the financial crisis in 2008. This year has been another banner year in the space, but shares of both Family Dollar and Dollar General have been trading lower since peaking in July. Earnings Player traders can take the pause as an opportunity to pounce. Dollar General has exceeded expectations in each of the last four quarters. They will likely do so again and when they do the shares should resume their upward trajectory.