Sectors & IndustriesConsumer DefensiveDiscount Stores

Best Discount Store Stocks to Buy Now (2023)

Top discount store stocks in 2023 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:

Dollar Tree (NASDAQ:DLTR) is the top discount store stock with a Zen Score of 51, which is 8 points higher than the discount store industry average of 43. It passed 17 out of 33 due diligence checks and has strong fundamentals. Dollar Tree has seen its stock return 11.24% over the past year, overperforming other discount store stocks by 10 percentage points.

Dollar Tree has an average 1 year price target of $170.42, an upside of 12.88% from Dollar Tree's current stock price of $150.97.

Dollar Tree stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Dollar Tree, 66.67% have issued a Strong Buy rating, 16.67% have issued a Buy, 16.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Walmart (NYSE:WMT) is the second best discount store stock with a Zen Score of 48, which is 5 points higher than the discount store industry average of 43. It passed 17 out of 38 due diligence checks and has strong fundamentals. Walmart has seen its stock return 1.97% over the past year, overperforming other discount store stocks by 1 percentage points.

Walmart has an average 1 year price target of $159.17, an upside of 13.14% from Walmart's current stock price of $140.68.

Walmart stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 30 analysts covering Walmart, 50% have issued a Strong Buy rating, 30% have issued a Buy, 20% 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 47, which is 4 points higher than the discount store industry average of 43. It passed 15 out of 33 due diligence checks and has strong fundamentals. Ollie's Bargain Outlet Holdings has seen its stock return 22.26% over the past year, overperforming other discount store stocks by 21 percentage points.

Ollie's Bargain Outlet Holdings has an average 1 year price target of $62.08, an upside of 10.59% from Ollie's Bargain Outlet Holdings's current stock price of $56.14.

Ollie's Bargain Outlet Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Ollie's Bargain Outlet Holdings, 41.67% have issued a Strong Buy rating, 25% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% 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 6.85%, which is 4 percentage points higher than the discount store industry average of 2.36%. 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 -22.9% indicates that its high dividend yield might not be sustainable for the long-term.

Target (NYSE:TGT) has an annual dividend yield of 2.9%, which is 1 percentage points higher than the discount store industry average of 2.36%. 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 68.3% indicates that its dividend yield is sustainable for the long-term.

Walmart (NYSE:WMT) has an annual dividend yield of 1.59%, which is -1 percentage points lower than the discount store industry average of 2.36%. 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 68.4% indicates that its dividend yield is sustainable for the long-term.

Discount store stocks were down -0.13% in the last day, and up 1.62% over the last week.

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

Based on WallStreetZen's Valuation Score, the 3 most undervalued discount store stocks right now are:

Dollar Tree (NASDAQ:DLTR) is the most undervalued discount store stock based on WallStreetZen's Valuation Score. Dollar Tree has a valuation score of 43, which is 18 points higher than the discount store industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Dollar Tree's stock has gained 11.24% in the past year. It has overperformed other stocks in the discount store industry by 10 percentage points.

Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) is the second most undervalued discount store stock based on WallStreetZen's Valuation Score. Ollie's Bargain Outlet Holdings has a valuation score of 43, which is 18 points higher than the discount store industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Ollie's Bargain Outlet Holdings's stock has gained 22.26% in the past year. It has overperformed other stocks in the discount store industry by 21 percentage points.

Pricesmart (NASDAQ:PSMT) is the third most undervalued discount store stock based on WallStreetZen's Valuation Score. Pricesmart has a valuation score of 43, which is 18 points higher than the discount store industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Pricesmart's stock has gained 7.89% in the past year. It has overperformed other stocks in the discount store industry by 7 percentage points.