Dollar General shares close lower on Tuesday, company to offer CBD cosmetic products in some stores in Tennessee and Kentucky

Dollar General Corp (DG) announced on Tuesday that cannabidiol (CBD) cosmetic products would now be offered in over 1 000 of its stores in Tennessee and Kentucky amid increasing demand for such products.

Dollar General shares closed lower for the seventh time in the past ten trading sessions in New York on Tuesday. The stock edged down 0.29% ($0.45) to $154.37, after touching an intraday high at $155.49 and an intraday low at $153.89.

Shares of Dollar General Corp have risen 42.83% so far in 2019 compared with a 24.96% gain for the benchmark index, S&P 500 (SPX).

In 2018, Dollar General Corp’s stock went up 16.20%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

“Our decision to offer CBD products is based on customer interests or demands,” Jason Reiser, Dollar General’s Chief Merchandising Officer, was quoted as saying by Reuters.

CBD is a non-psychoactive chemical contained in cannabis plants, which has the effect of suppressing anxiety and other ills, but it does not cause a high. It has been gaining in popularity among the millennial generation.

Dollar General’s assortment of CBD products currently includes topical cosmetic items such as bath bombs, bath salts and face masks. Meanwhile, the company does not intend to offer ingestible or edible CBD merchandise.

Analyst stock price forecast and recommendation

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding Dollar General Corp’s stock price, have a median target of $175.00, with a high estimate of $190.00 and a low estimate of $145.00. The median estimate represents a 13.36% upside compared to the closing price of $154.37 on December 10th.

The same media also reported that at least 18 out of 28 surveyed investment analysts had rated Dollar General Corp’s stock as “Buy”, while 7 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.