Sectors & IndustriesConsumer DefensiveDiscount Stores

Best Discount Store Stocks to Buy Now (2025)

Top discount store stocks in 2025 ranked by overall Due Diligence Score. See the best discount store stocks to buy now, according to analyst forecasts for the discount stores industry.

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

Pricesmart (NASDAQ:PSMT) is the top discount store stock with a Due Diligence Score of 54, which is 14 points higher than the discount store industry average of 40. It passed 20 out of 38 due diligence checks and has strong fundamentals. Pricesmart has seen its stock return 20.64% over the past year, overperforming other discount store stocks by 1 percentage points.

Walmart (NYSE:WMT) is the second best discount store stock with a Due Diligence Score of 44, which is 4 points higher than the discount store industry average of 40. It passed 16 out of 38 due diligence checks and has strong fundamentals. Walmart has seen its stock return 77.12% over the past year, overperforming other discount store stocks by 57 percentage points.

Walmart has an average 1 year price target of $97.59, an upside of 2.99% from Walmart's current stock price of $94.76.

Walmart stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 27 analysts covering Walmart, 66.67% have issued a Strong Buy rating, 29.63% have issued a Buy, 3.7% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Costco (NASDAQ:COST) is the third best discount store stock with a Due Diligence Score of 43, which is 3 points higher than the discount store industry average of 40. It passed 18 out of 38 due diligence checks and has strong fundamentals. Costco has seen its stock return 36.88% over the past year, overperforming other discount store stocks by 17 percentage points.

Costco has an average 1 year price target of $1,019.35, an upside of 8.48% from Costco's current stock price of $939.68.

Costco stock has a consensus Buy recommendation according to Wall Street analysts. Of the 23 analysts covering Costco, 34.78% have issued a Strong Buy rating, 30.43% have issued a Buy, 34.78% 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 3.22%, which is 1 percentage points higher than the discount store industry average of 1.88%. 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 46.9% indicates that its dividend yield is sustainable for the long-term.

Dollar General (NYSE:DG) has an annual dividend yield of 2.47%, which is 1 percentage points higher than the discount store industry average of 1.88%. 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 38.9% indicates that its dividend yield is sustainable for the long-term.

Pricesmart (NASDAQ:PSMT) has an annual dividend yield of 2.38%, which is the same as the discount store industry average of 1.88%. 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 47.5% indicates that its dividend yield is sustainable for the long-term.

Discount store stocks were up 0.17% in the last day, and up 1.24% over the last week.

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

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

Bj's Wholesale Club Holdings (NYSE:BJ) is the most undervalued discount store stock based on WallStreetZen's Valuation Score. Bj's Wholesale Club Holdings has a valuation score of 43, which is 13 points higher than the discount store industry average of 30. It passed 3 out of 7 valuation due diligence checks.

Bj's Wholesale Club Holdings's stock has gained 50.68% in the past year. It has overperformed other stocks in the discount store industry by 31 percentage points.

Dollar Tree (NASDAQ:DLTR) is the second most undervalued discount store stock based on WallStreetZen's Valuation Score. Dollar Tree has a valuation score of 43, which is 13 points higher than the discount store industry average of 30. It passed 3 out of 7 valuation due diligence checks.

Dollar Tree's stock has dropped -44.31% in the past year. It has underperformed other stocks in the discount store industry by -64 percentage points.

Target (NYSE:TGT) is the third most undervalued discount store stock based on WallStreetZen's Valuation Score. Target has a valuation score of 43, which is 13 points higher than the discount store industry average of 30. It passed 3 out of 7 valuation due diligence checks.

Target's stock has dropped -0.94% in the past year. It has underperformed other stocks in the discount store industry by -21 percentage points.