Why Are Best Buy And Dollar General Stocks Rising Premarket?

Retail investors are optimistic about both companies, ahead of their earnings.

Best Buy and Dollar General stocks were up 2% in early premarket on Thursday, ahead of their quarterly reports before the market opens.

On Stocktwits, retail investors favored Best Buy, placing an 'extremely bullish' sentiment on the electronics retail store chain's shares. The sentiment for Dollar General was 'bullish.'

Recent strong results from off-price retailers like Ross Stores and Five Below have made it clear that consumers are gravitating towards value purchases, a trend that is expected to benefit Dollar General.

Research firm Oppenheimer noted the possibility of Dollar General raising its full-year forecast, while UBS said the stock still has room for growth. 

Shares of Dollar General, which appointed a new CFO earlier this month, have gained 46.7% year-to-date. Analysts expect a 4.6% growth in sales for its second quarter, in line with the growth rates seen in the preceding quarters, according to Koyfin data.

Best Buy could beat Wall Street's earnings estimates, buoyed by strong sales of Nintendo's Switch 2 and the retailer's price increases in certain product categories, according to Wedbush's recent note.

Analysts expect Best Buy's revenue to drop 0.6%, an improvement over the rates in the preceding five quarters, according to Koyfin. Best Buy shares are down 12.6% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<