Stocks
Dollar General defines themselves as “an American chain of variety stores.” Dollar General is known for its ridiculously discounted prices and dabbles in many shopping areas, from birthday party materials to frozen food.
Due to Covid-19, Dollar General initially had many supply-chain issues, leading to less-than-expected profit. However, they have now employed newer, better management methods and can now meet the demand of their consumers.
Dollar General has generated a 10% sales growth and is expected to grow almost 1,100+ stores in the next year or so. Expect higher revenue and minimized costs from this company soon!
Because Dollar Store is in the consumables business, they can rarely lose customers. In fact, studies show that returning consumers gradually spend a bit more each time they shop. All these facts together prove that Dollar Store is one of the best growth stocks in the market now.
- Financials:
- Market Cap: $54.72B
- Revenue: $8.75B
- Profit Margin: 6.32%
- Operating Margin: 8.85%
- Gross Margin: 31.23%
Next, Leggett & Platt is “an American diversified manufacturer that designs and produces various engineered components and products that can be found in homes and automobiles.” Because of their nuanced business strategies, Leggett & Platt is at the forefront of their respective industry.
Because of its broad, expansive consumer market, Leggett & Platt has many revenue opportunities; they took advantage of this when people were stuck in their homes during Covid-19. However, Leggett & Platt’s selling point is their commitment to serving others. In each and every one of their business strategies, they put consumer needs above their own.
Finally, though Leggett & Platt has a very severe ESG rating (48), their 2022 Sustainability Report demonstrates that they are making changes to address societal and environmental concerns. This is exactly the mentality and strategy investors and analysts look for in companies.
Leggett & Platt is a company ready to seize its forthcoming market opportunities.
- Financials:
- Market Cap: $4.93B
- Revenue: $1.322B
- Profit Margin: 7.73%
- Operating Margin: 10.74%
- Gross Margin: 20.16%
Financial Term
The financial term for this blog is operating margin, which measures how much profit a company makes on a dollar of sales after paying for production costs. Viable companies typically have a very high operating margin to demonstrate that their daily, weekly, monthly, and yearly operations are run smoothly, efficiently, and profitably.
Finance4Scholars 