Undervalued stocks - Dollar General stock $DG

Dollar General stock is it undervalued it's down 30% today they had earnings and guidance came in pretty soft and and guiding lower on a consumer having cash strap customers and uh weaker than expected earnings and some outlooks for the year so you know they're saying it's the consumer Behavior blaming the customer now here's the thing Dollar General they just sell Essentials and kind of some lowcost uh you know regular household type things these are Essentials people are buying them from somewhere so they're not going to Dollar General as much if we look at the monthly now they've been on a bad Trend since just 2023 the whole year down and it looks like it's continuing now without getting into the financials and all how many stores they might have or if they are opening or closing stores and all that stuff this is just one that I think no matter what when you look actually look at this when you look at 2020 they were they were really in a good phase kind of doing well up until then and they were I know their big plan was opening a bunch of stores they seem to be that was their model uh whatever that strategy was I think every every business really needed a change in the 2020 to 2021 phase right restaurants especially I I think online ordering all these things became so much more than norm and consumer Behavior especially online ordering and things like that from Amazon and it just became like you you almost had to get things sent and uh laggards in the in in the world like like you know grandparents or something they maybe had to figure out Amazon or Walmart online ordering something like that so that's that's in a way that's the competitor to Dollar General that I see here like did do they have these these items that people are going to probably it's always uh consumables right I think that's their big uh Revenue driver is people probably like paper top like like things that budget items that that people don't maybe uh they're not brand loyal as much but but like Amazon's can be able to come in and just you know have some no brand uh paper towels all that stuff and that's what I would expect especially as like age takes care of things like like 20 year olds now are going to be very used to just buying online they might not they don't go down to the store uh the older generation they're still in the habit of maybe they they have a day of the week where they go and get certain things at certain certain stores and like you know personally we just order things if we can get it on Amazon save us time save us trip and if it's free to ship now and things like that it's hard to beat so I don't love uh again I don't love low cost like business stocks like even Walmart never really never really held that stock for I think maybe had it a little bit once in a while like years ago but really like am Amazon became the clear like when it becomes like that I really just you'd really just be like where is this technology and consumer Behavior going to take things and and one of these companies probably has an upper hand so Apple going to have an upper hand Tesla going to have an upper hand uh Amazon has the upper hand versus Walmart so like if you had Amazon for the last seven or eight years that was that was a way better holding than uh Walmart and so that's that's another big spot where I like to look where uh how how can an what was a big player and and maybe a you know a giant or something in their area are they going to be leveraging technology correctly as Ecom and online behaviors and just everything like that um that that is the norm and it becomes even more so and I think when you see TR without again without even looking at their financials this the share price tells you how well their revenue and things like that were doing over this period so the consumer in my in my just quick hot take opinion is shifting their behavior into you know somewhere else that they're buying those items and especially in a post 2021 22 uh world that model that they were they were chasing down possibly is not working for them right now so I don't like again the the lowcost Dollar General Dollar stock stuff like that he's always always get a lot of attention especially with the economic news it's like you know CNBC everything is for over 10 years I think I've always heard the Dollar General plays the dollar stores all these things for like the consumer behaviors and economic conditions if if they're uh inflation or pinched in in the pocketbook type stuff but you know there's so many other opportunities where people are just like again Coca-Cola is sold at all these places so I'd rather buy something that's like the the business model is easy and it's almost in a way like the the product and the customer it's very quick and easy to get to Dollar General Walmart uh Walgreens all these they're all just middlemen right they're just retailers so you got to really I want to really like who's going to give that experience the best because if they're just standing in the middle it's going to come down to customer experience so that's why like Amazon wins or [Music] what that's going to be how the winners are decided going forward so talk to you later