According to
Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best discount store stocks to buy right now are:
1. Pricesmart (NASDAQ:PSMT)
Pricesmart (NASDAQ:PSMT) is the #1 top discount store stock out of 9 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year.
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The Component Grade breakdown for Pricesmart (NASDAQ:PSMT) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.
Pricesmart (NASDAQ:PSMT) has a Due Diligence Score of 55, which is 15 points higher than the discount store industry average of 40.
PSMT passed 20 out of 38 due diligence checks and has strong fundamentals. Pricesmart has seen its stock return 20.52% over the past year, overperforming other discount store stocks by 12 percentage points.
2. Dollar General (NYSE:DG)
Dollar General (NYSE:DG) is the #2 top discount store stock out of 9 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year.
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The Component Grade breakdown for Dollar General (NYSE:DG) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: D, Financials: C, and AI: C.
Dollar General (NYSE:DG) has a Due Diligence Score of 35, which is -5 points lower than the discount store industry average of 40.
DG passed 11 out of 38 due diligence checks and has average fundamentals. Dollar General has seen its stock return 29.43% over the past year, overperforming other discount store stocks by 20 percentage points.
Dollar General has an average 1 year
price target of $119.90, an upside of 10.24% from Dollar General's current stock price of $108.76.
Dollar General stock has a consensus Buy recommendation according to Wall Street analysts. Of the 19 analysts covering Dollar General, 26.32% have issued a Strong Buy rating, 15.79% have issued a Buy, 57.89% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.
3. Costco (NASDAQ:COST)
Costco (NASDAQ:COST) is the #3 top discount store stock out of 9 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year.
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The Component Grade breakdown for Costco (NASDAQ:COST) is: Value: D, Growth: B, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: B.
Costco (NASDAQ:COST) has a Due Diligence Score of 48, which is 8 points higher than the discount store industry average of 40.
COST passed 19 out of 38 due diligence checks and has strong fundamentals. Costco has seen its stock return 6.39% over the past year, underperforming other discount store stocks by -3 percentage points.
Costco has an average 1 year
price target of $1,081.20, an upside of 14.62% from Costco's current stock price of $943.32.
Costco stock has a consensus Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Costco, 40% have issued a Strong Buy rating, 30% have issued a Buy, 30% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.