Sectors & IndustriesConsumer DefensiveDiscount Stores

Best Discount Store Stocks to Buy Now (2022)

Top discount store stocks in 2022 ranked by overall Zen Score. See the best discount store stocks to buy now, according to analyst forecasts for the discount stores industry.

According to Zen Score, the 3 best discount store stocks to buy right now are:

TARGET (NYSE:TGT) is the top discount store stock with a Zen Score of 59, which is 14 points higher than the discount store industry average of 45. It passed 22 out of 38 due diligence checks and has strong fundamentals. TARGET has seen its stock lose -33.48% over the past year, underperforming other discount store stocks by -27 percentage points.

TARGET has an average 1 year price target of $218.32, an upside of 45.59% from TARGET's current stock price of $149.95.

TARGET stock has a consensus Buy recommendation according to Wall Street analysts. Of the 22 analysts covering TARGET, 45.45% have issued a Strong Buy rating, 27.27% have issued a Buy, 27.27% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Costco (NASDAQ:COST) is the second best discount store stock with a Zen Score of 50, which is 5 points higher than the discount store industry average of 45. It passed 20 out of 38 due diligence checks and has strong fundamentals. Costco has seen its stock return 14.15% over the past year, overperforming other discount store stocks by 21 percentage points.

Costco has an average 1 year price target of $539.48, an upside of 23.25% from Costco's current stock price of $437.71.

Costco stock has a consensus Buy recommendation according to Wall Street analysts. Of the 21 analysts covering Costco, 38.1% have issued a Strong Buy rating, 28.57% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

OLLIE's BARGAIN OUTLET HOLDINGS (NASDAQ:OLLI) is the third best discount store stock with a Zen Score of 48, which is 3 points higher than the discount store industry average of 45. It passed 15 out of 33 due diligence checks and has strong fundamentals. OLLIE's BARGAIN OUTLET HOLDINGS has seen its stock lose -45.59% over the past year, underperforming other discount store stocks by -39 percentage points.

OLLIE's BARGAIN OUTLET HOLDINGS has an average 1 year price target of $63.73, an upside of 51.71% from OLLIE's BARGAIN OUTLET HOLDINGS's current stock price of $42.01.

OLLIE's BARGAIN OUTLET HOLDINGS stock has a consensus Buy recommendation according to Wall Street analysts. Of the 15 analysts covering OLLIE's BARGAIN OUTLET HOLDINGS, 46.67% have issued a Strong Buy rating, 0% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 13.33% have issued a Strong Sell.

Out of 6 discount store stocks that have issued dividends in the past year, the 3 discount store stocks with the highest dividend yields are:

BIG LOTS (NYSE:BIG) has an annual dividend yield of 4.57%, which is 3 percentage points higher than the discount store industry average of 1.91%. BIG LOTS's dividend payout is stable, having never dropped by more than 10% in the last 10 years. BIG LOTS's dividend has shown consistent growth over the last 10 years.

BIG LOTS's dividend payout ratio of 22.1% indicates that its high dividend yield is sustainable for the long-term.

TARGET (NYSE:TGT) has an annual dividend yield of 2.4%, which is the same as the discount store industry average of 1.91%. TARGET's dividend payout is stable, having never dropped by more than 10% in the last 10 years. TARGET's dividend has shown consistent growth over the last 10 years.

TARGET's dividend payout ratio of 23.8% indicates that its dividend yield is sustainable for the long-term.

Walmart (NYSE:WMT) has an annual dividend yield of 1.79%, which is the same as the discount store industry average of 1.91%. Walmart's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Walmart's dividend has shown consistent growth over the last 10 years.

Walmart's dividend payout ratio of 45.1% indicates that its dividend yield is sustainable for the long-term.

Discount store stocks were up 0.44% in the last day, and down -14.36% over the last week.

We couldn't find a catalyst for why discount store stocks are up.

Based on WallStreetZen's Valuation Score, the 2 most undervalued discount store stocks right now are:

OLLIE's BARGAIN OUTLET HOLDINGS (NASDAQ:OLLI) is the most undervalued discount store stock based on WallStreetZen's Valuation Score. OLLIE's BARGAIN OUTLET HOLDINGS has a valuation score of 71, which is 27 points higher than the discount store industry average of 44. It passed 5 out of 7 valuation due diligence checks.

OLLIE's BARGAIN OUTLET HOLDINGS's stock has dropped -45.59% in the past year. It has underperformed other stocks in the discount store industry by -39 percentage points.

DOLLAR TREE (NASDAQ:DLTR) is the second most undervalued discount store stock based on WallStreetZen's Valuation Score. DOLLAR TREE has a valuation score of 57, which is 13 points higher than the discount store industry average of 44. It passed 4 out of 7 valuation due diligence checks.

DOLLAR TREE's stock has gained 21.46% in the past year. It has overperformed other stocks in the discount store industry by 28 percentage points.