After earnings beat, is Dollar General a buy?

Adam Jeffery | CNBC

Dollar General posted better-than-expected second-quarter results on Wednesday, as efforts such as selling cigarettes and more brand-name products attracted customers.

The discount retailer stood by the lowered full-year profit forecast it gave in June, even though its second-quarter earnings per share were 3 cents better than Wall Street expected.

Dollar General shares traded higher on Wednesday, but professional traders can't agree on whether the stock is a "buy." What is Dollar General stock doing now? (Click here to get the latest quotes for Dollar General.)

Appearing on "Fast Money Halftime Report," co-founder Pete Najarian made the bullish case for DG. He thinks the growth in discount retail is undeniable. From positive earnings and sales figures, to higher customer traffic and strong share buybacks, Najarian said just about every metric is good. He thinks the stock has upside potential.

Though Michael Murphy, CEO of Rosecliff Capital, agreed Dollar General put up a good quarter, he still has many concerns about the company. He noted it failed to raise guidance, for example. Its gross margins are compressed, he continued, and tobacco sales might have peaked.

When it comes to retail, Stephen Weiss of Short Hills Capital said he prefers Macy's and Target, which are both "cheaper" stocks than Dollar General.

—Reuters contributed to this report.

—By CNBC's Drew Sandholm. Follow him on Twitter @DrewSandholm.