Review all DG / WMT research and portfolio changes on the TSOH website
From “Walmart: Full Steam Ahead” (November 2024): “From where we stand today, there’s no question Mr. Market has greatly changed his odds on these bets relative to three and a half years ago: at that time, the forward EPS multiples were ~23x and ~21x for Walmart and Dollar General, respectively. Today, I have those numbers at ~32x and ~12x, respectively. That is an understandable change directionally given what has taken place; what’s less clear to me is whether the magnitude of the swing is justified.”
On an absolute and a relative basis, the latest quarter presented reason for celebration for Dollar General: the company’s +3.5% comp for Q2 FY26, attributable to ~2% growth in traffic and ~1.5% growth in ticket, bested the result at Walmart’s U.S. business for the first time in more than five years.
