Sectors & IndustriesConsumer DefensiveDiscount Stores

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.

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

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 18.64% over the past year, overperforming other discount store stocks by 8 percentage points.

Walmart has an average 1 year price target of $65.22, an upside of 10.06% from Walmart's current stock price of $59.26.

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.

Dollar General (NYSE:DG) 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 18 out of 38 due diligence checks and has strong fundamentals. Dollar General has seen its stock lose -32.64% over the past year, underperforming other discount store stocks by -43 percentage points.

Dollar General has an average 1 year price target of $158.77, an upside of 8.98% from Dollar General's current stock price of $145.68.

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.

Pricesmart (NASDAQ:PSMT) is the third best discount store stock with a Zen Score of 49, which is 14 points higher than the discount store industry average of 35. It passed 17 out of 38 due diligence checks and has strong fundamentals. Pricesmart has seen its stock return 4.58% over the past year, underperforming other discount store stocks by -6 percentage points.

Pricesmart has an average 1 year price target of $90.00, an upside of 11.91% from Pricesmart's current stock price of $80.42.

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.

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 N/A, which is N/A percentage points lower than the discount store industry average of 2.16%. 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 0% indicates that its dividend yield might not be sustainable for the long-term.

Costco (NASDAQ:COST) has an annual dividend yield of 2.68%, which is 1 percentage points higher than the discount store industry average of 2.16%. 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.

Target (NYSE:TGT) has an annual dividend yield of 2.63%, which is the same as the discount store industry average of 2.16%. 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.

Discount store stocks were down -0.22% in the last day, and down -3.36% over the last week. Bj's Wholesale Club Holdings was the among the top losers in the discount stores industry, dropping -3.6% yesterday.

BJ's Wholesale Club shares are trading lower after Loop Capital downgraded the stock from Buy to Hold.

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

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 25 points higher than the discount store industry average of 32. It passed 4 out of 7 valuation due diligence checks.

Dollar General's stock has dropped -32.64% in the past year. It has underperformed other stocks in the discount store industry by -43 percentage points.

Target (NYSE:TGT) is the second most undervalued discount store stock based on WallStreetZen's Valuation Score. Target has a valuation score of 57, which is 25 points higher than the discount store industry average of 32. It passed 4 out of 7 valuation due diligence checks.

Target's stock has gained 2.57% in the past year. It has underperformed other stocks in the discount store industry by -8 percentage points.

Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) is the third most undervalued discount store stock based on WallStreetZen's Valuation Score. Ollie's Bargain Outlet Holdings has a valuation score of 43, which is 11 points higher than the discount store industry average of 32. It passed 3 out of 7 valuation due diligence checks.

Ollie's Bargain Outlet Holdings's stock has gained 17.87% in the past year. It has overperformed other stocks in the discount store industry by 7 percentage points.