Analysts say a market rotation to defensive stocks and Dollar General’s lower exposure to China tariffs have boosted the stock.
Dollar General has greatly outperformed the S&P 500 during President Donald Trump’s first 100 days back in office.
Analysts say a market rotation to defensive stocks and Dollar General’s lower exposure to China tariffs have boosted the stock.
Still, the dollar store’s shares are recovering from a steep plunge in August.
Dollar General is among the best-performing stocks in the first 100 days of President Donald Trump’s second term.
Since Trump’s Jan. 20 inauguration, shares of the discount retailer have soared more than 36% as of Tuesday’s close, the third-largest percentage-point rise in the S&P 500 behind software company Palantir and tobacco giant Philip Morris International. It’s far outperformed the consumer staples sector as a whole, which is up 6% since the inauguration as of end of trading Tuesday, and climbed higher than competitors like Dollar Tree and Walmart.
Part of the story is an overall market rotation to defensive plays like consumer staples. Amid widespread economic uncertainty, especially around inflation and Trump’s tariffs, investors have pivoted from growth stories to safer harbors.
«Historically, the dollar stores have done better in softer macro environments, especially if we were heading into a recession», said CFRA Research senior vice president Arun Sundaram.
Stocks plunged in early April when Trump announced steep «reciprocal tariffs» on dozens of trading partners, most of which he later lowered to a universal level of 10% for a period of 90 days.
