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Best Discount Store Stocks to Buy Now (2024)
Top discount store stocks in 2024 ranked by overall Zen Score. See the best discount store stocks to buy now, according to analyst forecasts for the discount stores industry.

Industry: Discount Stores
Ticker
Company
Financials Score
Market Cap
ROE
ROA
ROCE
ROIC
D/E
Current Ratio
Gross Margin
Profit Margin
Operating Margin
WMT
WALMART INC
$489.28B19.70%6.10%14.86%13.20%1.930.8324.40%2.40%3.67%
OLLI
OLLIE's BARGAIN OUTLET HOLDINGS INC
$4.84B12.60%8.30%11.51%15.20%0.522.7639.60%8.60%10.83%
DG
DOLLAR GENERAL CORP
$33.88B26.10%5.50%10.16%6.80%3.561.1930.30%4.30%6.32%
TGT
TARGET CORP
$80.64B33.40%7.60%16.09%11.20%3.120.9127.60%3.90%5.40%
BJ
BJ's WHOLESALE CLUB HOLDINGS INC
$10.17B40.50%7.90%19.02%13.50%3.580.7318.20%2.60%4.01%
PSMT
PRICESMART INC
$2.54B10.60%5.80%14.13%14.00%0.881.2517.20%2.50%4.14%
COST
COSTCO WHOLESALE CORP
$324.68B28.40%9.90%29.23%30.00%2.200.9312.40%2.70%3.72%
EXTO
ALMACENES EXITO SA
$862.30M1.60%0.70%9.46%10.10%1.200.7425.70%0.60%4.12%
DLTR
DOLLAR TREE INC
$28.88B-11.70%-4.30%-5.09%-3.70%2.011.3130.50%-3.30%-2.88%
BIG
BIG LOTS INC
$120.37M-95.90%-12.90%-13.70%-7.60%10.581.4435.20%-9.60%-7.69%
TBBB
BBB FOODS INC
N/AN/AN/AN/AN/A-4.020.49N/AN/AN/A

Discount Store Stocks FAQ

What are the best discount store stocks to buy right now in Mar 2024?

According to Zen Score, the 3 best discount store stocks to buy right now are:

1. Walmart (NYSE:WMT)


Walmart (NYSE:WMT) is the top discount store stock with a Zen Score of 53, which is 18 points higher than the discount store industry average of 35. It passed 19 out of 38 due diligence checks and has strong fundamentals. Walmart has seen its stock return 26.35% over the past year, overperforming other discount store stocks by 7 percentage points.

Walmart has an average 1 year price target of $65.36, an upside of 7.63% from Walmart's current stock price of $60.72.

Walmart stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 15 analysts covering Walmart, 46.67% have issued a Strong Buy rating, 40% have issued a Buy, 13.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

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


Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) is the second best discount store stock with a Zen Score of 50, which is 15 points higher than the discount store industry average of 35. It passed 16 out of 33 due diligence checks and has strong fundamentals. Ollie's Bargain Outlet Holdings has seen its stock return 35.85% over the past year, overperforming other discount store stocks by 17 percentage points.

Ollie's Bargain Outlet Holdings has an average 1 year price target of $91.67, an upside of 16.3% from Ollie's Bargain Outlet Holdings's current stock price of $78.82.

Ollie's Bargain Outlet Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Ollie's Bargain Outlet Holdings, 16.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Dollar General (NYSE:DG)


Dollar General (NYSE:DG) is the third best discount store stock with a Zen Score of 50, which is 15 points higher than the discount store industry average of 35. It passed 18 out of 38 due diligence checks and has strong fundamentals. Dollar General has seen its stock lose -25.14% over the past year, underperforming other discount store stocks by -44 percentage points.

Dollar General has an average 1 year price target of $146.24, a downside of -5.17% from Dollar General's current stock price of $154.21.

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, 5.88% have issued a Buy, 64.71% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the discount store stocks with highest dividends?

Out of 6 discount store stocks that have issued dividends in the past year, the 3 discount store stocks with the highest dividend yields are:

1. Big Lots (NYSE:BIG)


Big Lots (NYSE:BIG) has an annual dividend yield of N/A, which is N/A percentage points lower than the discount store industry average of 1.83%. Big Lots's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Big Lots's dividend has shown consistent growth over the last 10 years.

Big Lots's dividend payout ratio of -3.8% indicates that its dividend yield might not be sustainable for the long-term.

2. Costco (NASDAQ:COST)


Costco (NASDAQ:COST) has an annual dividend yield of 2.61%, which is 1 percentage points higher than the discount store industry average of 1.83%. Costco's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Costco's dividend has shown consistent growth over the last 10 years.

Costco's dividend payout ratio of 124.5% indicates that its dividend yield might not be sustainable for the long-term.

3. Target (NYSE:TGT)


Target (NYSE:TGT) has an annual dividend yield of 2.51%, which is 1 percentage points higher than the discount store industry average of 1.83%. 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 48.9% indicates that its dividend yield is sustainable for the long-term.

Why are discount store stocks up?

Discount store stocks were up 1.27% in the last day, and up 0.2% over the last week.

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

What are the most undervalued discount store stocks?

Based on WallStreetZen's Valuation Score, the 3 most undervalued discount store stocks right now are:

1. Dollar General (NYSE:DG)


Dollar General (NYSE:DG) is the most undervalued discount store stock based on WallStreetZen's Valuation Score. Dollar General has a valuation score of 57, which is 23 points higher than the discount store industry average of 34. It passed 4 out of 7 valuation due diligence checks.

Dollar General's stock has dropped -25.14% in the past year. It has underperformed other stocks in the discount store industry by -44 percentage points.

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


Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) is the second most undervalued discount store stock based on WallStreetZen's Valuation Score. Ollie's Bargain Outlet Holdings has a valuation score of 57, which is 23 points higher than the discount store industry average of 34. It passed 4 out of 7 valuation due diligence checks.

Ollie's Bargain Outlet Holdings's stock has gained 35.85% in the past year. It has overperformed other stocks in the discount store industry by 17 percentage points.

3. Target (NYSE:TGT)


Target (NYSE:TGT) is the third most undervalued discount store stock based on WallStreetZen's Valuation Score. Target has a valuation score of 57, which is 23 points higher than the discount store industry average of 34. It passed 4 out of 7 valuation due diligence checks.

Target's stock has gained 9.59% in the past year. It has underperformed other stocks in the discount store industry by -9 percentage points.

Are discount store stocks a good buy now?

50% of discount store stocks rated by analysts are a buy right now. On average, analysts expect discount store stocks to rise by 3.62% over the next year.

What is the average p/e ratio of the discount stores industry?

The average P/E ratio of the discount stores industry is 33.63x.
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Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.