As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the non-discretionary retail industry, including Dollar General (NYSE: DG) and its peers.

Food is non-discretionary because it's essential for life (maybe not those Oreos?), so consumers naturally need a place to buy it. Selling food is a notoriously tough business, however, as the costs of procuring and transporting oftentimes perishable products and operating stores fit to sell those products can be high. Competition is also fierce because the alternatives are numerous. While online competition threatens all of retail, grocery is one of the least penetrated because of the nature of the product. Still, we could be one startup or innovation away from a paradigm shift.

The 9 non-discretionary retail stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.8% below.

While some non-discretionary retail stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.3% since the latest earnings results.

Best Q4: Dollar General (NYSE: DG)

Appealing to the budget-conscious consumer, Dollar General (NYSE: DG) is a discount retailer that sells a wide range of household essentials, groceries, apparel/beauty products, and seasonal merchandise.

Dollar General reported revenues of $10.91 billion, up 5.9% year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Dollar General pulled off the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 12.4% since reporting and currently trades at $126.92.

Is now the time to buy Dollar General? Access our full analysis of the earnings results here, it’s free.

Target (NYSE: TGT)

With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE: TGT) serves the suburban consumer who is looking for a wide range of products under one roof.

Target reported revenues of $30.45 billion, down 1.5% year on year, in line with analysts’ expectations. The business had a strong quarter with full-year EPS guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The market seems content with the results as the stock is up 1.4% since reporting. It currently trades at $114.75.

Is now the time to buy Target? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Grocery Outlet (NASDAQ: GO)

Due to its differentiated procurement and buying approach, Grocery Outlet (NASDAQ: GO) is a discount grocery store chain that offers substantial discounts on name-brand products.

Grocery Outlet reported revenues of $1.22 billion, up 10.7% year on year, falling short of analysts’ expectations by 0.6%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

As expected, the stock is down 32.3% since the results and currently trades at $5.95.

Read our full analysis of Grocery Outlet’s results here.

Dollar Tree (NASDAQ: DLTR)

A treasure hunt because there’s no guarantee of consistent product selection, Dollar Tree (NASDAQ: DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices.

Dollar Tree reported revenues of $5.45 billion, up 9% year on year. This print was in line with analysts’ expectations. However, it was a slower quarter as it logged a significant miss of analysts’ EBITDA estimates and EPS guidance for next quarter missing analysts’ expectations.

Dollar Tree had the weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $107.40.

Read our full, actionable report on Dollar Tree here, it’s free.

Kroger (NYSE: KR)

With a sprawling network of over 2,400 locations offering digital pickup services, Kroger (NYSE: KR) operates supermarkets, pharmacies, and fuel centers across 35 states, offering customers groceries, household items, and private-label products.

Kroger reported revenues of $34.73 billion, up 1.2% year on year. This result missed analysts’ expectations by 0.8%. Zooming out, it was a mixed quarter as it also logged a narrow beat of analysts’ gross margin estimates but a slight miss of analysts’ revenue estimates.

Kroger had the weakest performance against analyst estimates among its peers. The stock is up 8.3% since reporting and currently trades at $73.62.

Read our full, actionable report on Kroger here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.