Sectors & IndustriesConsumer DefensiveDiscount Stores

Best Discount Store Stocks to Buy Now (2026)

Top discount store stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% 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:

Target (NYSE:TGT) 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 +17.17% per year. Learn more.

The Component Grade breakdown for Target (NYSE:TGT) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: D, Financials: C, and AI: C.

Target (NYSE:TGT) has a Due Diligence Score of 36, which is -6 points lower than the discount store industry average of 42. Although this number is below the industry average, our proven quant model rates TGT as a "B".

TGT passed 12 out of 38 due diligence checks and has average fundamentals. Target has seen its stock return 35.75% over the past year, overperforming other discount store stocks by 32 percentage points.

Target has an average 1 year price target of $130.21, a downside of -2.77% from Target's current stock price of $133.92.

Target stock has a consensus Buy recommendation according to Wall Street analysts. Of the 24 analysts covering Target, 25% have issued a Strong Buy rating, 12.5% have issued a Buy, 45.83% have issued a hold, while 12.5% have issued a Sell rating, and 4.17% have issued a Strong Sell.

Dollar Tree (NASDAQ:DLTR) is the #2 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 +17.17% 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: A, and AI: C.

Dollar Tree (NASDAQ:DLTR) has a Due Diligence Score of 48, which is 6 points higher than the discount store industry average of 42.

DLTR passed 16 out of 33 due diligence checks and has strong fundamentals. Dollar Tree has seen its stock return 23.81% over the past year, overperforming other discount store stocks by 20 percentage points.

Dollar Tree has an average 1 year price target of $120.00, a downside of -2.14% from Dollar Tree's current stock price of $122.62.

Dollar Tree stock has a consensus Hold recommendation according to Wall Street analysts. Of the 15 analysts covering Dollar Tree, 26.67% have issued a Strong Buy rating, 6.67% have issued a Buy, 40% have issued a hold, while 26.67% have issued a Sell rating, and 0% have issued a Strong Sell.

Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) 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 +5.11% per year. Learn more.

The Component Grade breakdown for Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) is: Value: C, Growth: C, Momentum: D, Sentiment: C, Safety: C, Financials: C, and AI: C.

Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) has a Due Diligence Score of 58, which is 16 points higher than the discount store industry average of 42.

OLLI passed 19 out of 33 due diligence checks and has strong fundamentals. Ollie's Bargain Outlet Holdings has seen its stock lose -45.11% over the past year, underperforming other discount store stocks by -49 percentage points.

Ollie's Bargain Outlet Holdings has an average 1 year price target of $120.00, an upside of 65.91% from Ollie's Bargain Outlet Holdings's current stock price of $72.33.

Ollie's Bargain Outlet Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Ollie's Bargain Outlet Holdings, 63.64% have issued a Strong Buy rating, 18.18% have issued a Buy, 18.18% have issued a hold, while 0% have issued a Sell rating, and 0% 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 3.41%, which is 2 percentage points higher than the discount store industry average of 1.5%. 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 59.9% indicates that its dividend yield is sustainable for the long-term.

Dollar General (NYSE:DG) has an annual dividend yield of 2.01%, which is 1 percentage points higher than the discount store industry average of 1.5%. 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 33.2% indicates that its dividend yield is sustainable for the long-term.

Walmart (NASDAQ:WMT) has an annual dividend yield of 0.84%, which is -1 percentage points lower than the discount store industry average of 1.5%. 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 33.9% indicates that its dividend yield is sustainable for the long-term.

Discount store stocks were down -0.9% in the last day, and up 1.53% over the last week.

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

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:

Dollar General (NYSE:DG) is the 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 29, which is 2 points higher than the discount store industry average of 27. It passed 2 out of 7 valuation due diligence checks.

Dollar General's stock has gained 2.75% in the past year. It has underperformed other stocks in the discount store industry by -1 percentage points.

Target (NYSE:TGT) is the second 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.

Target has a valuation score of 29, which is 2 points higher than the discount store industry average of 27. It passed 2 out of 7 valuation due diligence checks.

Target's stock has gained 35.75% in the past year. It has overperformed other stocks in the discount store industry by 32 percentage points.

Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) 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.

Ollie's Bargain Outlet Holdings has a valuation score of 57, which is 30 points higher than the discount store industry average of 27. It passed 4 out of 7 valuation due diligence checks.

Ollie's Bargain Outlet Holdings's stock has dropped -45.11% in the past year. It has underperformed other stocks in the discount store industry by -49 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 16.22% over the next year.

0% of discount store stocks have a Zen Rating of A (Strong Buy), 22.22% of discount store stocks are rated B (Buy), 77.78% are rated C (Hold), 0% are rated D (Sell), and 0% are rated F (Strong Sell).