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 B. Stocks with a rating of B have had an average return of +19.88% 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 16 points higher than the discount store industry average of 39.
PSMT passed 20 out of 38 due diligence checks and has strong fundamentals. Pricesmart has seen its stock return 22.98% over the past year, overperforming other discount store stocks by 13 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: C, 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 -4 points lower than the discount store industry average of 39.
DG passed 11 out of 38 due diligence checks and has average fundamentals. Dollar General has seen its stock return 30.91% over the past year, overperforming other discount store stocks by 21 percentage points.
Dollar General has an average 1 year
price target of $122.11, an upside of 11.32% from Dollar General's current stock price of $109.69.
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.
3. Walmart (NYSE:WMT)
Walmart (NYSE:WMT) 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 Walmart (NYSE:WMT) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: C.
Walmart (NYSE:WMT) has a Due Diligence Score of 42, which is 3 points higher than the discount store industry average of 39.
WMT passed 15 out of 38 due diligence checks and has strong fundamentals. Walmart has seen its stock return 28.86% over the past year, overperforming other discount store stocks by 19 percentage points.
Walmart has an average 1 year
price target of $112.31, an upside of 12.95% from Walmart's current stock price of $99.44.
Walmart stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 16 analysts covering Walmart, 43.75% have issued a Strong Buy rating, 50% have issued a Buy, 6.25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.