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:

Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) 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 Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) has a Due Diligence Score of 48, which is 10 points higher than the discount store industry average of 38.

OLLI passed 16 out of 33 due diligence checks and has strong fundamentals. Ollie's Bargain Outlet Holdings has seen its stock return 38.45% over the past year, overperforming other discount store stocks by 29 percentage points.

Ollie's Bargain Outlet Holdings has an average 1 year price target of $143.27, an upside of 4.53% from Ollie's Bargain Outlet Holdings's current stock price of $137.07.

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, 45.45% have issued a Strong Buy rating, 9.09% have issued a Buy, 45.45% 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 B. Stocks with a rating of B have had an average return of +19.88% 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 48, which is 10 points higher than the discount store industry average of 38.

PSMT passed 18 out of 38 due diligence checks and has strong fundamentals. Pricesmart has seen its stock return 31.3% over the past year, overperforming other discount store stocks by 22 percentage points.

Dollar General (NYSE:DG) 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 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 -3 points lower than the discount store industry average of 38.

DG passed 11 out of 38 due diligence checks and has average fundamentals. Dollar General has seen its stock return 23.4% over the past year, overperforming other discount store stocks by 14 percentage points.

Dollar General has an average 1 year price target of $122.89, an upside of 15.78% from Dollar General's current stock price of $106.14.

Dollar General stock has a consensus Buy recommendation according to Wall Street analysts. Of the 18 analysts covering Dollar General, 27.78% have issued a Strong Buy rating, 16.67% have issued a Buy, 55.56% 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 5.06%, which is 3 percentage points higher than the discount store industry average of 1.86%. 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 52.2% indicates that its high dividend yield is sustainable for the long-term.

Dollar General (NYSE:DG) has an annual dividend yield of 1.67%, which is the same as the discount store industry average of 1.86%. 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 43.6% indicates that its dividend yield is sustainable for the long-term.

Pricesmart (NASDAQ:PSMT) has an annual dividend yield of 1.08%, which is -1 percentage points lower than the discount store industry average of 1.86%. 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 25.5% indicates that its dividend yield is sustainable for the long-term.

Discount store stocks were up 0.98% in the last day, and up 1.37% over the last week.

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

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 18 points higher than the discount store industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Target's stock has dropped -41.48% in the past year. It has underperformed other stocks in the discount store industry by -51 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 18 points higher than the discount store industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Dollar General's stock has gained 23.4% in the past year. It has overperformed other stocks in the discount store industry by 14 percentage points.

Dollar Tree (NASDAQ:DLTR) is the third 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 Tree has a valuation score of 14, which is -11 points higher than the discount store industry average of 25. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates DLTR a Valuation Rating of "B".

Dollar Tree's stock has gained 33.03% in the past year. It has overperformed other stocks in the discount store industry by 23 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 13.24% 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), 66.67% are rated C (Hold), 0% are rated D (Sell), and 11.11% are rated F (Strong Sell).