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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
Forecast Score
Market Cap
Price
Price Target
Upside/Downside
Top Analysts Upside/Downside
Consensus
Top Analysts Consensus
Analysts
Top Analysts
Fore. Revenue Growth
Fore. Earnings Growth
Forecast ROE
Forecast ROA
TGT
TARGET CORP
$67.91B$147.10$184.1225.16%Buy262.35%19.99%N/AN/A
DG
DOLLAR GENERAL CORP
$31.25B$142.27$158.7711.60%Buy135.63%31.82%N/AN/A
PSMT
PRICESMART INC
$2.54B$82.99$90.008.45%Strong Buy16.51%N/AN/AN/A
WMT
WALMART INC
$524.10B$65.04$71.209.47%Strong Buy223.84%13.64%27.19%9.04%
OLLI
OLLIE's BARGAIN OUTLET HOLDINGS INC
$4.84B$78.92$92.2916.94%Buy79.48%5.17%N/AN/A
BJ
BJ's WHOLESALE CLUB HOLDINGS INC
$11.58B$87.13$85.75-1.58%Buy124.57%4.84%N/AN/A
COST
COSTCO WHOLESALE CORP
$360.64B$813.17$767.70-5.59%Buy204.88%4.48%N/AN/A
DLTR
DOLLAR TREE INC
$24.64B$113.02$155.2337.35%Strong Buy135.08%N/AN/AN/A
BIG
BIG LOTS INC
$98.28M$3.33$3.00-9.91%Strong Sell3-2.50%N/AN/AN/A
TBBB
BBB FOODS INC
$3.01B$26.80$29.008.21%Strong Buy4N/AN/AN/AN/A

Discount Store Stocks FAQ

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

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

1. Target (NYSE:TGT)


Target (NYSE:TGT) is the top discount store stock with a Zen Score of 53, which is 19 points higher than the discount store industry average of 34. It passed 19 out of 38 due diligence checks and has strong fundamentals. Target has seen its stock return 9.91% over the past year, underperforming other discount store stocks by -15 percentage points.

Target has an average 1 year price target of $184.12, an upside of 25.16% from Target's current stock price of $147.10.

Target stock has a consensus Buy recommendation according to Wall Street analysts. Of the 26 analysts covering Target, 46.15% have issued a Strong Buy rating, 19.23% have issued a Buy, 34.62% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Dollar General (NYSE:DG)


Dollar General (NYSE:DG) is the second best discount store stock with a Zen Score of 50, which is 16 points higher than the discount store industry average of 34. It passed 18 out of 38 due diligence checks and has strong fundamentals. Dollar General has seen its stock lose -30.21% over the past year, underperforming other discount store stocks by -55 percentage points.

Dollar General has an average 1 year price target of $158.77, an upside of 11.6% from Dollar General's current stock price of $142.27.

Dollar General stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Dollar General, 30.77% have issued a Strong Buy rating, 15.38% have issued a Buy, 53.85% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Pricesmart (NASDAQ:PSMT)


Pricesmart (NASDAQ:PSMT) is the third best discount store stock with a Zen Score of 49, which is 15 points higher than the discount store industry average of 34. It passed 17 out of 38 due diligence checks and has strong fundamentals. Pricesmart has seen its stock return 12.88% over the past year, underperforming other discount store stocks by -12 percentage points.

Pricesmart has an average 1 year price target of $90.00, an upside of 8.45% from Pricesmart's current stock price of $82.99.

Pricesmart stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Pricesmart, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% 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 5 discount store stocks that have issued dividends in the past year, the 3 discount store stocks with the highest dividend yields are:

1. Target (NYSE:TGT)


Target (NYSE:TGT) has an annual dividend yield of 2.99%, which is 1 percentage points higher than the discount store industry average of 2.14%. 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.

2. Pricesmart (NASDAQ:PSMT)


Pricesmart (NASDAQ:PSMT) has an annual dividend yield of 2.46%, which is the same as the discount store industry average of 2.14%. Pricesmart's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Pricesmart's dividend has shown consistent growth over the last 10 years.

Pricesmart's dividend payout ratio of 26.1% indicates that its dividend yield is sustainable for the long-term.

3. Costco (NASDAQ:COST)


Costco (NASDAQ:COST) has an annual dividend yield of 2.36%, which is the same as the discount store industry average of 2.14%. 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.

Why are discount store stocks down?

Discount store stocks were down -0.2% in the last day, and up 0.88% over the last week.

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

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. Target (NYSE:TGT)


Target (NYSE:TGT) is the most undervalued discount store stock based on WallStreetZen's Valuation Score. Target has a valuation score of 57, which is 28 points higher than the discount store industry average of 29. It passed 4 out of 7 valuation due diligence checks.

Target's stock has gained 9.91% in the past year. It has underperformed other stocks in the discount store industry by -15 percentage points.

2. Dollar General (NYSE:DG)


Dollar General (NYSE:DG) is the second most undervalued discount store stock based on WallStreetZen's Valuation Score. Dollar General has a valuation score of 57, which is 28 points higher than the discount store industry average of 29. It passed 4 out of 7 valuation due diligence checks.

Dollar General's stock has dropped -30.21% in the past year. It has underperformed other stocks in the discount store industry by -55 percentage points.

3. Pricesmart (NASDAQ:PSMT)


Pricesmart (NASDAQ:PSMT) is the third most undervalued discount store stock based on WallStreetZen's Valuation Score. Pricesmart has a valuation score of 43, which is 14 points higher than the discount store industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Pricesmart's stock has gained 12.88% in the past year. It has underperformed other stocks in the discount store industry by -12 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 4.95% 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 37.28x.
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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.