Dollar General Jumps After Positive Outlook

Good morning. It's December 5th, and today, we’ll look at positive signs for discount retail as both Dollar General and Five Below stocks are gaining in premarket action. Meanwhile, a tiny pharma stock has just doubled itself before the opening bell.

Previous Close 📈

On Wednesday, the Dow Jones Industrial Average closed above 45,000 for the first time, gaining approximately 0.7%. The S&P 500 rose 0.6%, and the Nasdaq Composite increased by 1.3%, both achieving new closing highs.

Futures

As of this morning, Dow futures are down 18 points (0.04%), S&P 500 futures are falling by 0.08%, and Nasdaq-100 futures are declining by 0.1%.

Technology

This AI Breakthrough Could Be Bigger Than Nvidia

Artificial intelligence has already reshaped industries and delivered massive returns for early investors. But a groundbreaking project, backed by Bill Gates, could redefine the field entirely.

Experts believe this revolutionary advancement could surpass ChatGPT in both scale and impact, positioning itself as a game-changer for the industry and the cornerstone of the next phase of AI growth.

Unlike the giants dominating today’s headlines, this opportunity remains under the radar, with unmatched potential to disrupt industries and deliver exponential returns.

As the global AI market expands rapidly, early investors in transformative technologies like this often reap the most significant rewards.

This could be the moment to align with a project at the forefront of the AI revolution—before it becomes the next big story.

Click here to discover the next major tech breakout before it happens!

What to Watch

Today's earnings beat includes Kroger (KR) and Dollar General (DG), who will release their results before the opening bell.

After the market closes, keep an eye on Lululemon Athletica (LULU), Samsara (IOT), Hewlett Packard Enterprise (HPE), and Ulta Beauty (ULTA) as they report their latest financials.

On the economic front, two significant releases will take place at 8:30 a.m. ET: the Initial Jobless Claims for November, which will reveal the latest trends in unemployment, and the U.S. Trade Deficit for October, which will provide a snapshot of the country’s trade balance and economic health.

Retail

Dollar General Cuts Profit Outlook but Commits to Growth with 575 New Stores

Dollar General reduced the upper limit of its annual profit projection, citing $32.7 million in hurricane-related expenses incurred during the third quarter. The discount retailer now forecasts annual earnings per share between $5.50 and $5.90, down from the previous range of $5.50 to $6.20.

Despite the revised profit outlook, Dollar General is doubling down on growth. The company announced plans to open approximately 575 new locations across the U.S. in the fiscal year ending January 2026.

Additionally, the retailer will undertake full renovations of about 2,000 existing stores as part of its continued investment in improving the shopping experience.

Shares of the discount retail firm are up 2.21% in premarket trade.

Dollar General’s decision reflects its strategy to expand its footprint and enhance its appeal to budget-conscious consumers, even as it navigates challenges from natural disasters. The company remains focused on capitalizing on its position as a leading discount retailer to drive long-term growth.

Technology

SAIC Reports Strong Q3 FY2025 Results, Raises Full-Year Guidance as Stock Jumps

Shares of Science Applications International Corporation (SAIC) are climbing by 9% in premarket trade today. The technology integrator shared impressive third-quarter results, raising its full-year guidance and announcing a significant share repurchase program.

SAIC’s Q3 adjusted earnings per share of $2.61 are higher than analysts’ estimates of $2.50. Revenue is up 4.3% year-over-year, reaching $1.98 billion, exceeding expectations of $1.95 billion. Operating income grew to $160 million, with margins improving to 8.1%, up from 7.5% in the prior year. Adjusted EBITDA reached $197 million, reflecting an 11% year-over-year increase.

The company saw robust contract activity during the quarter, securing key deals such as a $229 million IT contract with the U.S. Department of Defense under the NORAD/USNORTHCOM Information Technology Enterprise Services (NITES) program and a $118 million infrastructure services contract with the Department of Transportation.

SAIC raised its full-year FY2025 revenue guidance to a range of $7.425 billion to $7.475 billion, with adjusted EPS expected between $8.50 and $8.65.

Additionally, SAIC’s Board of Directors has approved a $1.2 billion share repurchase program, representing 20% of the company’s market value, and declared a quarterly dividend of $0.37 per share, payable January 24, 2025.

Retail

Strong Q3 Earnings Propel Five Below Stock, New Leadership Announced

Five Below Inc. shares are surging 15% in premarket trade today after the discount retailer announced robust third-quarter earnings, raised its full-year guidance, and unveiled Winnie Park as its new Chief Executive Officer, effective December 16, 2024.

For Q3, the company reported adjusted earnings per share of $0.42, far exceeding the $0.17 consensus estimate. Revenue climbed 14.6% year-over-year to $843.7 million, surpassing projections of $796 million. Comparable sales inched up by 0.6%, marking a notable improvement in performance across a broader range of merchandise categories.

“We delivered stronger performance across a broader group of our merchandise worlds compared to the second quarter and improved our operational execution,” said Ken Bull, Interim CEO and COO. The company opened 82 new stores during the quarter, bringing its total to 1,749 locations across 44 states, an 18.1% increase from the prior year.

Five Below also raised its full-year 2024 outlook, now expecting adjusted EPS between $4.78 and $4.96 on revenue of $3.84 billion to $3.87 billion. This guidance surpasses Wall Street estimates of $4.61 in EPS and $3.8 billion in revenue.

Looking to Q4, the company anticipates revenue of $1.35 billion to $1.38 billion and adjusted EPS in the range of $3.23 to $3.41, accounting for an expected 3-5% decline in comparable sales.

Music & Entertainment

This Company Could Revolutionize the Music Industry

Goldman Sachs projects a $4.2 billion opportunity in the music industry, fueled by the rise of superfans and direct-to-fan engagement.

One company is at the forefront of this transformation, offering proprietary technology—protected by 15 granted patents—that allows artists to scale personalized fan experiences like never before.

Positioned to capture 60% of this emerging market by 2027, the company has already secured partnerships with top artists and major record labels.

Its innovative approach is not only reshaping how music is monetized but also creating significant value for early investors.

This could be your chance to invest in a leader driving the next wave of growth in the music industry.

Click here to discover more about this company and its transformative potential.

PainReform Ltd. [PRFX] - Last Close: $2.68

PainReform's stock is surging by more than 100% in premarket trading today.

The company has successfully regained compliance with Nasdaq's listing requirements, resolving concerns about its stock price falling below the minimum threshold.

This compliance ensures that PainReform remains listed on the Nasdaq exchange, maintaining investor confidence and market visibility.

Capricor Therapeutics, Inc. [CAPR] - Last Close: $12.72

Capricor Therapeutics' stock is surging 22% in premarket trading today following major regulatory milestones in Europe for its lead drug, deramiocel.

The European Medicines Agency granted orphan drug designation, which supports its development for Duchenne muscular dystrophy (a severe genetic disorder), offering benefits like a 10-year market exclusivity upon approval.

Additionally, it received the Advanced Therapy Medicinal Product designation, providing specialized regulatory support to advance this innovative cell-based treatment.

These designations highlight the potential of deramiocel to address a critical unmet medical need and strengthen Capricor's position in the European market.

Verint Systems Inc. [VRNT] - Last Close: $25.97

Verint Systems is rising by 20% in premarket trading today.

The firm’s strong Q3 results have exceeded analysts' expectations. The customer engagement software company’s sales of $224.2 million are higher than the expected $210.1 million.

Sales were driven by the growing demand for its AI-powered SaaS products.

Verint’s profit of 54 cents per share is also well above the 43 cents per share analysts predicted.

Technology

Could This Be the Next Major Tech Breakout?

The rise of artificial intelligence has already delivered massive gains, but one little-known project is poised to take it to the next level.

Bill Gates is quietly working on an AI advancement so powerful, it could overshadow ChatGPT—and even make Nvidia’s meteoric rise look modest.

With the potential to become one of the fastest-moving profit stories of our time, this breakthrough is still under the radar—but not for long.

If you’ve ever felt the sting of missing out on Microsoft, Amazon, or Google, don’t let it happen again.

Click here to uncover this opportunity before the world catches on.

Everything Else

• The Vietnamese government and NVIDIA signed an agreement to advance AI initiatives.

• EU’s competition head keeps Google’s breakup on the table while seeking cooperation with the Trump administration.

• Synopsys cited China sales slump and tighter U.S. export controls in reduced forecast.

• SentinelOne beat revenue estimates but cautious outlook and rising costs cause stock to plunge 15%.

• Chewy reported stronger profitability in Q3 despite modest sales growth.

• HSBC’s acquisition boosted RBC's revenue and net income in a strong fourth quarter.

• Southwest Airlines saw stronger fourth-quarter growth following strategic initiatives.

• American Eagle crashes 16% upon lowered annual sales target as holiday demand softens.

• Elevated credit losses overshadow Bank of Montreal's solid operating results.

• Canadian Imperial Bank posted strong earnings as credit loss provisions ease.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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