Turnaround Stories and Shorting Stocks

In this episode of Motley Fool Hidden Gems Investing , Motley Fool contributors Tyler Crowe, Matt Frankel, and Lou Whiteman discuss:

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Tyler Crowe: We're talking short sellers and turnarounds today on Motley Fool Hidden Gems Investing . Welcome to Motley Fool Hidden Gems Investing . I'm your host, Tyler Crowe, and today I'm joined by longtime Fool contributors, Lou Whiteman and Matt Frankel. We're going to be getting into short sellers, specifically short-selling research firms, after the court decision that came down on Citron Research earlier yesterday. We're also going to look at investor questions related to real estate on the private side, not necessarily reads that we normally talk about on a publicly traded entity show.

But first, we're going to start with Dollar General. I wanted to bring this one up specifically because it's been a turnaround story for several years. It's not the most headline-grabbing company. But during the 2010s, Dollar General was one of the best-performing stocks. It handily beat the S&P 500 . Companies that we think of now like Mag 7 companies like Microsoft and Alphabet , Dollar General was beating it. That came to a crashing halt right around 2022 as trouble started to pile up for various reasons, and the company's been trying to get its act together for a while now. This morning, it just reported earnings, and the numbers said they beat expectations and raised guidance, and yet the stock is down about almost 3% as we're taping this. Matt, was this a good result, or was it just beating bad expectations for what is now a downtrodden stock?