Dollar General stock could perform well if the economy increasingly weakens, according to Lido Advisors chief market strategist Gina Sanchez. Sanchez expects economic growth to slow down in the second-half of 2025, over a combination of tariff and inflation worries. Still, Sanchez said she’s holding onto athleisure stock Lululemon as well as shares of cloud computing technology provider Oracle . Here’s a closer look at what she had to say on CNBC’s ” Power Lunch ” on Friday. Dollar General Stock in discount retailer Dollar General has gained more than 13% in 2025 and almost 16% in the past month alone. This week, Dollar General announced plans to sell its Family Dollar division for $1 billion. Sanchez favors the the discount retailer and says despite some headwinds including store remodeling and labor costs, there is potential for shares to gain further as consumers opt to trade down in an attempt to find more value. “If you look at sort of where the consumer is and where they’re going, stocks like this tend to perform,” she said. “We think that they’re moving in the right direction and this is cheap. We think the second half for the consumer is going to be particularly challenging so we think we want to be defensive going into that.” DG YTD mountain Dollar General stock in 2025. Lululemon Sanchez is more neutral on Lululemon stock. Shares have slumped 25% in 2025 and plummeted 16% on Friday alone. On Thursday, the Vancouver, Canada-based company issued weaker-than-expected full-year guidance, with CEO Calvin McDonald blaming weakening consumer spending and lighter foot traffic in stores. While Sanchez shares those concerns, she said she’s not yet parting ways with the stock and still sees some catalysts for growth, albeit not in the near term. LULU YTD mountain Lululemon stock. She noted that a potential tailwind for Lululemon is its store openings in Italy, the Czech Republic and Turkey, but cautioned that expanding into those countries will take some time to bear fruit. “We think that the near term is going to be challenging…— macroeconomic headwinds, inflation and tariff concerns — all of those work against Lululemon,” she said. “Their biggest sales are in China [and] that’s not a good story.” “We think that the near-term is going to be choppy…[but] it’s still a well-run company,” she added. Oracle Sanchez is similarly neutral on Oracle. Shares were under pressure on Friday after the Defense Department said it would cut its use of Oracle software among its civilian workforce in an effort to contain costs. Oracle has pulled back nearly 16% in 2025, virtually all of that coming in the past month. However, there is “still a secular story” supporting Oracle’s growth thanks to artificial intelligence and boosted by the company’s 2026 and 2027 growth expectations, she said. Oracle is selling for about 24 times estimated fiscal 2025 earnings for the year ending May 31, and about 22 times next year’s profits, according to FactSet data. ORCL YTD mountain Oracle stock in 2025. “We do think there’s a longer-term story here,” she said.
