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:

Target (NYSE:TGT) is the top discount store stock with a Zen Score of 57, which is 19 points higher than the discount store industry average of 38. It passed 21 out of 38 due diligence checks and has strong fundamentals. Target has seen its stock lose -20.38% over the past year, underperforming other discount store stocks by -11 percentage points.

Target has an average 1 year price target of $147.19, an upside of 11.79% from Target's current stock price of $131.67.

Target stock has a consensus Buy recommendation according to Wall Street analysts. Of the 21 analysts covering Target, 23.81% have issued a Strong Buy rating, 19.05% have issued a Buy, 57.14% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Dollar General (NYSE:DG) is the second best discount store stock with a Zen Score of 52, which is 14 points higher than the discount store industry average of 38. It passed 19 out of 38 due diligence checks and has strong fundamentals. Dollar General has seen its stock lose -49.62% over the past year, underperforming other discount store stocks by -40 percentage points.

Dollar General has an average 1 year price target of $149.78, an upside of 17.48% from Dollar General's current stock price of $127.50.

Dollar General stock has a consensus Buy recommendation according to Wall Street analysts. Of the 23 analysts covering Dollar General, 26.09% have issued a Strong Buy rating, 8.7% have issued a Buy, 56.52% have issued a hold, while 4.35% have issued a Sell rating, and 4.35% 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 9 points higher than the discount store industry average of 38. It passed 15 out of 33 due diligence checks and has strong fundamentals. Ollie's Bargain Outlet Holdings has seen its stock return 22.98% over the past year, overperforming other discount store stocks by 32 percentage points.

Ollie's Bargain Outlet Holdings has an average 1 year price target of $80.36, an upside of 5.02% from Ollie's Bargain Outlet Holdings's current stock price of $76.52.

Ollie's Bargain Outlet Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Ollie's Bargain Outlet Holdings, 36.36% have issued a Strong Buy rating, 18.18% have issued a Buy, 36.36% have issued a hold, while 0% have issued a Sell rating, and 9.09% have issued a Strong Sell.

Out of 5 discount store stocks that have issued dividends in the past year, the 3 discount store stocks with the highest dividend yields are:

Target (NYSE:TGT) has an annual dividend yield of 3.31%, which is the same as the discount store industry average of 3.72%. 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 55.3% indicates that its dividend yield is sustainable for the long-term.

Dollar General (NYSE:DG) has an annual dividend yield of 1.82%, which is -2 percentage points lower than the discount store industry average of 3.72%. Dollar General's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Dollar General's dividend has shown consistent growth over the last 10 years.

Dollar General's dividend payout ratio of 23.3% indicates that its dividend yield is sustainable for the long-term.

Walmart (NYSE:WMT) has an annual dividend yield of 1.43%, which is -2 percentage points lower than the discount store industry average of 3.72%. 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 43.7% indicates that its dividend yield is sustainable for the long-term.

Discount store stocks were up 0.29% in the last day, and up 1.45% over the last week.

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

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 57, which is 20 points higher than the discount store industry average of 37. It passed 4 out of 7 valuation due diligence checks.

Dollar Tree's stock has dropped -21.49% in the past year. It has underperformed other stocks in the discount store industry by -12 percentage points.

Dollar General (NYSE:DG) is the second most undervalued discount store stock based on WallStreetZen's Valuation Score. Dollar General has a valuation score of 57, which is 20 points higher than the discount store industry average of 37. It passed 4 out of 7 valuation due diligence checks.

Dollar General's stock has dropped -49.62% in the past year. It has underperformed other stocks in the discount store industry by -40 percentage points.

Target (NYSE:TGT) is the third most undervalued discount store stock based on WallStreetZen's Valuation Score. Target has a valuation score of 57, which is 20 points higher than the discount store industry average of 37. It passed 4 out of 7 valuation due diligence checks.

Target's stock has dropped -20.38% in the past year. It has underperformed other stocks in the discount store industry by -11 percentage points.