Sectors & IndustriesConsumer DefensiveDiscount Stores

Best Discount Store Stocks to Buy Now (2025)

Top discount store stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best discount store stocks to buy now. Learn More.

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:

Dollar General (NYSE:DG) is the #1 top discount store stock out of 9 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

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 42, which is 4 points higher than the discount store industry average of 38.

DG passed 14 out of 38 due diligence checks and has strong fundamentals. Dollar General has seen its stock return 76.6% over the past year, overperforming other discount store stocks by 76 percentage points.

Dollar General has an average 1 year price target of $132.59, a downside of -0.26% from Dollar General's current stock price of $132.93.

Dollar General stock has a consensus Buy recommendation according to Wall Street analysts. Of the 17 analysts covering Dollar General, 29.41% have issued a Strong Buy rating, 11.76% have issued a Buy, 58.82% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Pricesmart (NASDAQ:PSMT) 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. Learn more.

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 44, which is 6 points higher than the discount store industry average of 38.

PSMT passed 16 out of 38 due diligence checks and has strong fundamentals. Pricesmart has seen its stock return 37.46% over the past year, overperforming other discount store stocks by 37 percentage points.

Dollar Tree (NASDAQ:DLTR) 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. Learn more.

The Component Grade breakdown for Dollar Tree (NASDAQ:DLTR) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Dollar Tree (NASDAQ:DLTR) has a Due Diligence Score of 18, which is -20 points lower than the discount store industry average of 38.

DLTR passed 6 out of 33 due diligence checks and has weak fundamentals. Dollar Tree has seen its stock return 87.31% over the past year, overperforming other discount store stocks by 87 percentage points.

Dollar Tree has an average 1 year price target of $117.63, a downside of -10.33% from Dollar Tree's current stock price of $131.17.

Dollar Tree stock has a consensus Buy recommendation according to Wall Street analysts. Of the 16 analysts covering Dollar Tree, 43.75% have issued a Strong Buy rating, 6.25% have issued a Buy, 25% have issued a hold, while 18.75% have issued a Sell rating, and 6.25% 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 4.63%, which is 3 percentage points higher than the discount store industry average of 1.69%. 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 54.6% indicates that its high dividend yield is sustainable for the long-term.

Dollar General (NYSE:DG) has an annual dividend yield of 1.33%, which is the same as the discount store industry average of 1.69%. 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 40.7% indicates that its dividend yield is sustainable for the long-term.

Pricesmart (NASDAQ:PSMT) has an annual dividend yield of 0.97%, which is -1 percentage points lower than the discount store industry average of 1.69%. Pricesmart's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Pricesmart's dividend has shown consistent growth over the last 10 years.

Pricesmart's dividend payout ratio of 26.1% indicates that its dividend yield is sustainable for the long-term.

Discount store stocks were down -1.36% in the last day, and down -0.01% over the last week. Costco was the among the top losers in the discount stores industry, dropping -2.7% yesterday.

Costco Wholesale shares are trading lower after Roth Capital downgraded the stock from Neutral to Sell and lowered its price target from $906 to $769.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued discount store stocks right now are:

Target (NYSE:TGT) is the most undervalued discount store stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Target has a valuation score of 43, which is 14 points higher than the discount store industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Target's stock has dropped -26.34% in the past year. It has underperformed other stocks in the discount store industry by -27 percentage points.

Dollar General (NYSE:DG) is the second most undervalued discount store stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Dollar General has a valuation score of 43, which is 14 points higher than the discount store industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Dollar General's stock has gained 76.6% in the past year. It has overperformed other stocks in the discount store industry by 76 percentage points.

Bj's Wholesale Club Holdings (NYSE:BJ) is the third most undervalued discount store stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Bj's Wholesale Club Holdings has a valuation score of 43, which is 14 points higher than the discount store industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Bj's Wholesale Club Holdings's stock has dropped -6.26% in the past year. It has underperformed other stocks in the discount store industry by -7 percentage points.

62.5% of discount store stocks rated by analysts are a buy right now. On average, analysts expect discount store stocks to rise by 13.92% over the next year.

0% of discount store stocks have a Zen Rating of A (Strong Buy), 11.11% of discount store stocks are rated B (Buy), 77.78% are rated C (Hold), 11.11% are rated D (Sell), and 0% are rated F (Strong Sell).