WallStreetZenWallStreetZen

Best Discount Store Stocks to Buy Now (2022)
Top discount store stocks in 2022 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
Consensus
Analysts
Fore. Revenue Growth
Fore. Earnings Growth
Forecast ROE
Forecast ROA
DLTR
DOLLAR TREE INC
$33.12B$149.72$171.7514.71%Strong Buy124.74%14.01%28.52%10.30%
COST
COSTCO WHOLESALE CORP
$223.01B$503.86$556.1210.37%Buy177.02%9.58%37.50%12.06%
TGT
TARGET CORP
$75.96B$165.03$184.6411.88%Strong Buy282.68%25.16%57.31%11.36%
WMT
WALMART INC
$413.61B$153.37$158.123.09%Strong Buy272.45%29.84%26.72%7.80%
OLLI
OLLIE's BARGAIN OUTLET HOLDINGS INC
$3.78B$60.45$62.142.80%Buy1410.25%33.94%14.79%9.71%
BJ
BJ's WHOLESALE CLUB HOLDINGS INC
$9.51B$70.73$78.9211.58%Buy123.94%3.91%59.03%8.59%
PSMT
PRICESMART INC
$2.15B$69.46$100.0043.97%Strong Buy1N/AN/AN/AN/A
DG
DOLLAR GENERAL CORP
$52.84B$236.34$271.2514.77%Strong Buy135.58%10.58%51.29%10.78%
BIG
BIG LOTS INC
$516.03M$17.83$28.3058.72%Sell101.77%N/A14.88%3.46%

Discount Store Stocks FAQ

What are the best discount store stocks to buy right now in Dec 2022?

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

1. Dollar Tree (NASDAQ:DLTR)


Dollar Tree (NASDAQ:DLTR) is the top discount store stock with a Zen Score of 55, which is 12 points higher than the discount store industry average of 43. It passed 18 out of 33 due diligence checks and has strong fundamentals. Dollar Tree has seen its stock return 12.91% over the past year, overperforming other discount store stocks by 18 percentage points.

Dollar Tree has an average 1 year price target of $171.75, an upside of 14.71% from Dollar Tree's current stock price of $149.72.

Dollar Tree stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Dollar Tree, 66.67% have issued a Strong Buy rating, 16.67% have issued a Buy, 16.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Costco (NASDAQ:COST)


Costco (NASDAQ:COST) is the second best discount store stock with a Zen Score of 49, which is 6 points higher than the discount store industry average of 43. It passed 20 out of 38 due diligence checks and has strong fundamentals. Costco has seen its stock lose -4.9% over the past year.

Costco has an average 1 year price target of $556.12, an upside of 10.37% from Costco's current stock price of $503.86.

Costco stock has a consensus Buy recommendation according to Wall Street analysts. Of the 17 analysts covering Costco, 41.18% have issued a Strong Buy rating, 29.41% have issued a Buy, 29.41% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Target (NYSE:TGT)


Target (NYSE:TGT) is the third best discount store stock with a Zen Score of 46, which is 3 points higher than the discount store industry average of 43. It passed 17 out of 38 due diligence checks and has strong fundamentals. Target has seen its stock lose -31.35% over the past year, underperforming other discount store stocks by -26 percentage points.

Target has an average 1 year price target of $184.64, an upside of 11.88% from Target's current stock price of $165.03.

Target stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 28 analysts covering Target, 50% have issued a Strong Buy rating, 21.43% have issued a Buy, 28.57% 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 6.73%, which is 4 percentage points higher than the discount store industry average of 2.34%. 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 -66.3% indicates that its high dividend yield might not be sustainable for the long-term.

2. Target (NYSE:TGT)


Target (NYSE:TGT) has an annual dividend yield of 3.05%, which is 1 percentage points higher than the discount store industry average of 2.34%. 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 68.3% indicates that its dividend yield is sustainable for the long-term.

3. Walmart (NYSE:WMT)


Walmart (NYSE:WMT) has an annual dividend yield of 1.45%, which is -1 percentage points lower than the discount store industry average of 2.34%. Walmart's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Walmart's dividend has shown consistent growth over the last 10 years.

Walmart's dividend payout ratio of 68.4% indicates that its dividend yield is sustainable for the long-term.

Why are discount store stocks down?

Discount store stocks were down -4.33% in the last day, and down -3.81% over the last week. Big Lots was the among the top losers in the discount stores industry, dropping -8.56% yesterday.

Big Lots shares are trading lower after the company reported worse-than-expected Q3 adjusted EPS and sales results.

What are the most undervalued discount store stocks?

Based on WallStreetZen's Valuation Score, the 2 most undervalued discount store stocks right now are:

1. Dollar Tree (NASDAQ:DLTR)


Dollar Tree (NASDAQ:DLTR) is the most undervalued discount store stock based on WallStreetZen's Valuation Score. Dollar Tree has a valuation score of 57, which is 27 points higher than the discount store industry average of 30. It passed 4 out of 7 valuation due diligence checks.

Dollar Tree's stock has gained 12.91% in the past year. It has overperformed other stocks in the discount store industry by 18 percentage points.

2. Pricesmart (NASDAQ:PSMT)


Pricesmart (NASDAQ:PSMT) is the second most undervalued discount store stock based on WallStreetZen's Valuation Score. Pricesmart has a valuation score of 57, which is 27 points higher than the discount store industry average of 30. It passed 4 out of 7 valuation due diligence checks.

Pricesmart's stock has dropped -2.22% in the past year. It has overperformed other stocks in the discount store industry by 3 percentage points.

Are discount store stocks a good buy now?

55.56% of discount store stocks rated by analysts are a strong buy right now. On average, analysts expect discount store stocks to rise by 12.93% 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 39.24x.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

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.