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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.

Industry: Discount Stores
Ticker
Company
Exchange
Industry
Zen Score
Market Cap
Price
1d %
EBITDA
P/E
D/E
TGT
TARGET CORP
NYSE
Discount Stores
$70.24B$152.61-0.23%$8.50B17.15x3.95
COST
COSTCO WHOLESALE CORP
NASDAQ
Discount Stores
$206.60B$466.40-4.26%$9.89B36.61x2.17
BJ
BJ's WHOLESALE CLUB HOLDINGS INC
NYSE
Discount Stores
$9.87B$73.11-2.52%$868.21M20.20x6.48
DLTR
DOLLAR TREE INC
NASDAQ
Discount Stores
$31.64B$141.291.41%$2.88B20.30x1.70
WMT
WALMART INC
NYSE
Discount Stores
$353.01B$130.06-2.50%$30.91B25.86x2.08
DG
DOLLAR GENERAL CORP
NYSE
Discount Stores
$54.50B$241.620.59%$3.80B23.95x3.56
PSMT
PRICESMART INC
NASDAQ
Discount Stores
$1.81B$58.59-3.04%$226.19M17.97x0.85
OLLI
OLLIE's BARGAIN OUTLET HOLDINGS INC
NASDAQ
Discount Stores
$3.64B$58.08-1.43%$148.01M38.98x0.52
BIG
BIG LOTS INC
NYSE
Discount Stores
$540.63M$18.681.69%$364.78M-10.32x3.30

Discount Store Stocks FAQ

What are the best discount store stocks to buy right now in Sep 2022?

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

1. Target (NYSE:TGT)


Target (NYSE:TGT) is the top discount store stock with a Zen Score of 56, which is 9 points higher than the discount store industry average of 47. It passed 21 out of 38 due diligence checks and has strong fundamentals. Target has seen its stock lose -37.11% over the past year, underperforming other discount store stocks by -33 percentage points.

Target has an average 1 year price target of $196.31, an upside of 28.63% from Target's current stock price of $152.61.

Target stock has a consensus Buy recommendation according to Wall Street analysts. Of the 26 analysts covering Target, 46.15% have issued a Strong Buy rating, 26.92% have issued a Buy, 26.92% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Costco (NASDAQ:COST)


Costco (NASDAQ:COST) is the second best discount store stock with a Zen Score of 55, which is 8 points higher than the discount store industry average of 47. It passed 22 out of 38 due diligence checks and has strong fundamentals. Costco has seen its stock return 3.01% over the past year, overperforming other discount store stocks by 7 percentage points.

Costco has an average 1 year price target of $555.95, an upside of 19.2% from Costco's current stock price of $466.40.

Costco stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 21 analysts covering Costco, 47.62% have issued a Strong Buy rating, 28.57% have issued a Buy, 23.81% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Bj's Wholesale Club Holdings (NYSE:BJ)


Bj's Wholesale Club Holdings (NYSE:BJ) is the third best discount store stock with a Zen Score of 53, which is 6 points higher than the discount store industry average of 47. It passed 18 out of 33 due diligence checks and has strong fundamentals. Bj's Wholesale Club Holdings has seen its stock return 25.81% over the past year, overperforming other discount store stocks by 30 percentage points.

Bj's Wholesale Club Holdings has an average 1 year price target of $74.93, an upside of 2.49% from Bj's Wholesale Club Holdings's current stock price of $73.11.

Bj's Wholesale Club Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 14 analysts covering Bj's Wholesale Club Holdings, 57.14% have issued a Strong Buy rating, 14.29% have issued a Buy, 21.43% have issued a hold, while 0% have issued a Sell rating, and 7.14% have issued a Strong Sell.

What are the discount store stocks with highest dividends?

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:

1. Big Lots (NYSE:BIG)


Big Lots (NYSE:BIG) has an annual dividend yield of 6.42%, which is 4 percentage points higher than the discount store industry average of 2.39%. 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 -66.3% indicates that its high dividend yield might not be sustainable for the long-term.

2. Target (NYSE:TGT)


Target (NYSE:TGT) has an annual dividend yield of 3.18%, which is 1 percentage points higher than the discount store industry average of 2.39%. 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 42.5% indicates that its dividend yield is sustainable for the long-term.

3. Walmart (NYSE:WMT)


Walmart (NYSE:WMT) has an annual dividend yield of 1.71%, which is -1 percentage points lower than the discount store industry average of 2.39%. 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 44.3% indicates that its dividend yield is sustainable for the long-term.

Why are discount store stocks down?

Discount store stocks were down -1.85% in the last day, and down -4.64% over the last week. Costco was the among the top losers in the discount stores industry, dropping -4.26% yesterday.

Costco Wholesale shares are trading lower after the company reported Q4 financial results.

What are the most undervalued discount store stocks?

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

1. Pricesmart (NASDAQ:PSMT)


Pricesmart (NASDAQ:PSMT) is the most undervalued discount store stock based on WallStreetZen's Valuation Score. Pricesmart has a valuation score of 71, which is 25 points higher than the discount store industry average of 46. It passed 5 out of 7 valuation due diligence checks.

Pricesmart's stock has dropped -27.43% in the past year. It has underperformed other stocks in the discount store industry by -24 percentage points.

2. Dollar Tree (NASDAQ:DLTR)


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 71, which is 25 points higher than the discount store industry average of 46. It passed 5 out of 7 valuation due diligence checks.

Dollar Tree's stock has gained 65.06% in the past year. It has overperformed other stocks in the discount store industry by 69 percentage points.

3. Walmart (NYSE:WMT)


Walmart (NYSE:WMT) is the third most undervalued discount store stock based on WallStreetZen's Valuation Score. Walmart has a valuation score of 57, which is 11 points higher than the discount store industry average of 46. It passed 4 out of 7 valuation due diligence checks.

Walmart's stock has dropped -8.9% in the past year. It has underperformed other stocks in the discount store industry by -5 percentage points.

Are discount store stocks a good buy now?

44.44% of discount store stocks rated by analysts are a strong buy right now. On average, analysts expect discount store stocks to rise by 19.37% over the next year.

What is the average p/e ratio of the discount stores industry?

The average P/E ratio of the discount stores industry is 27.62x.
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Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.