Dollar General Corporation (DG) is down approximately 20% today after reporting earnings that missed expectations, with the company lowering EPS guidance for the year to flat to down 8% after previous expectations for 4% to 6% growth. The company cited a more challenging consumer environment for the shortfall.

However, I believe the decline in the stock is overdone, and with the stock selling for only 16X a conservative EPS estimate of $10.00 for the current fiscal year, there is good value in DG, considering its outstanding long-term record. I will have more details in Tuesday’s issue, but DG is a buy.

Buy DG stock under $170, my target is $200.