Down 45% in 6 Months, Is Dollar General Stock Too Cheap to Pass Up?

Buying a struggling stock while it's cheap can feel like you're getting a good deal, but you also need to consider the reasons behind any sell-off. If there are fundamental problems with the business driving away investors, buying in puts you at risk of catching a falling knife. It can be difficult to know when or if a recovery will take place.One stock that has been hurting badly this year is Dollar General (NYSE: DG). The discount retailer has been feeling the effects of a cash-strapped consumer, and investors are concerned its problems could get worse in future quarters, especially if economic conditions deteriorate. Is this stock in real trouble, or could Dollar General make for a great contrarian investment right now?Dollar General is down more than 45% in the past six months. Its decline has been so severe the retail stock is now trading near a seven-year low. The boost it received from pandemic-fueled spending is long gone, and widespread bearishness has taken over.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool