Sectors & IndustriesConsumer DefensiveDiscount Stores

Best Discount Store Stocks to Buy Now (2023)

Top discount store stocks in 2023 ranked by overall Zen Score. See the best discount store stocks to buy now, according to analyst forecasts for the discount stores industry.

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

Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) is the top discount store stock with a Zen Score of 51, which is 8 points higher than the discount store industry average of 43. It passed 16 out of 33 due diligence checks and has strong fundamentals. Ollie's Bargain Outlet Holdings has seen its stock return 22.69% over the past year, overperforming other discount store stocks by 28 percentage points.

Ollie's Bargain Outlet Holdings has an average 1 year price target of $60.90, an upside of 5.56% from Ollie's Bargain Outlet Holdings's current stock price of $57.69.

Ollie's Bargain Outlet Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Ollie's Bargain Outlet Holdings, 30% have issued a Strong Buy rating, 10% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 10% have issued a Strong Sell.

Dollar Tree (NASDAQ:DLTR) 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 16 out of 33 due diligence checks and has strong fundamentals. Dollar Tree has seen its stock lose -16.02% over the past year, underperforming other discount store stocks by -10 percentage points.

Dollar Tree has an average 1 year price target of $154.92, an upside of 15.95% from Dollar Tree's current stock price of $133.61.

Dollar Tree stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Dollar Tree, 41.67% have issued a Strong Buy rating, 16.67% have issued a Buy, 41.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Dollar General (NYSE:DG) 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 18 out of 38 due diligence checks and has strong fundamentals. Dollar General has seen its stock lose -26.08% over the past year, underperforming other discount store stocks by -21 percentage points.

Dollar General has an average 1 year price target of $209.17, an upside of 25.91% from Dollar General's current stock price of $166.12.

Dollar General stock has a consensus Buy recommendation according to Wall Street analysts. Of the 18 analysts covering Dollar General, 38.89% have issued a Strong Buy rating, 11.11% have issued a Buy, 44.44% have issued a hold, while 5.56% have issued a Sell rating, and 0% have issued a Strong Sell.

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:

Big Lots (NYSE:BIG) has an annual dividend yield of 19.77%, which is 15 percentage points higher than the discount store industry average of 4.77%. 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 -16.4% indicates that its high dividend yield might not be sustainable for the long-term.

Target (NYSE:TGT) has an annual dividend yield of 4.05%, which is -1 percentage points lower than the discount store industry average of 4.77%. 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 91.2% indicates that its dividend yield might not be sustainable for the long-term.

Walmart (NYSE:WMT) has an annual dividend yield of 1.52%, which is -3 percentage points lower than the discount store industry average of 4.77%. 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 54.5% indicates that its dividend yield is sustainable for the long-term.

Discount store stocks were up 1.47% in the last day, and down -3.19% 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:

Dollar Tree (NASDAQ:DLTR) is the most undervalued discount store stock based on WallStreetZen's Valuation Score. Dollar Tree has a valuation score of 71, which is 30 points higher than the discount store industry average of 41. It passed 5 out of 7 valuation due diligence checks.

Dollar Tree's stock has dropped -16.02% in the past year. It has underperformed other stocks in the discount store industry by -10 percentage points.

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 16 points higher than the discount store industry average of 41. It passed 4 out of 7 valuation due diligence checks.

Ollie's Bargain Outlet Holdings's stock has gained 22.69% in the past year. It has overperformed other stocks in the discount store industry by 28 percentage points.

Pricesmart (NASDAQ:PSMT) is the third most undervalued discount store stock based on WallStreetZen's Valuation Score. Pricesmart has a valuation score of 57, which is 16 points higher than the discount store industry average of 41. It passed 4 out of 7 valuation due diligence checks.

Pricesmart's stock has dropped -7.33% in the past year. It has underperformed other stocks in the discount store industry by -2 percentage points.