Dollar General (NYSE:DG) — This leadingU.S. discount retailer has defensive qualities that should help it weather a weak economy. With low operating margins and strong cash flow, earnings are expected to top $2.30 in 2012, up from $1.82 in 2011.
This stock was included in our 6 Top Stocks to Buy for October, but was recommended on a pullback to $34. But yesterday’s powerful advance in the face of a strong market decline changes our recommendation to a strong buy at the market. Note the sudden turn up by the stochastic. The trading target is increased to $44.