Sectors & IndustriesConsumer DefensiveDiscount Stores

Best Discount Store Stocks to Buy Now (2025)

Top discount store stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best discount store stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best discount store stocks to buy right now are:

Bj's Wholesale Club Holdings (NYSE:BJ) is the #1 top discount store stock out of 9 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Bj's Wholesale Club Holdings (NYSE:BJ) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: C.

Bj's Wholesale Club Holdings (NYSE:BJ) has a Due Diligence Score of 46, which is 7 points higher than the discount store industry average of 39.

BJ passed 15 out of 33 due diligence checks and has strong fundamentals. Bj's Wholesale Club Holdings has seen its stock return 20.71% over the past year, overperforming other discount store stocks by 6 percentage points.

Bj's Wholesale Club Holdings has an average 1 year price target of $116.83, an upside of 13.58% from Bj's Wholesale Club Holdings's current stock price of $102.86.

Bj's Wholesale Club Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Bj's Wholesale Club Holdings, 33.33% have issued a Strong Buy rating, 8.33% have issued a Buy, 58.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Pricesmart (NASDAQ:PSMT) is the #2 top discount store stock out of 9 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Pricesmart (NASDAQ:PSMT) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Pricesmart (NASDAQ:PSMT) has a Due Diligence Score of 48, which is 9 points higher than the discount store industry average of 39.

PSMT passed 18 out of 38 due diligence checks and has strong fundamentals. Pricesmart has seen its stock return 27.2% over the past year, overperforming other discount store stocks by 13 percentage points.

Walmart (NYSE:WMT) is the #3 top discount store stock out of 9 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Walmart (NYSE:WMT) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: C.

Walmart (NYSE:WMT) has a Due Diligence Score of 37, which is -2 points lower than the discount store industry average of 39.

WMT passed 13 out of 38 due diligence checks and has average fundamentals. Walmart has seen its stock return 36.65% over the past year, overperforming other discount store stocks by 22 percentage points.

Walmart has an average 1 year price target of $110.39, an upside of 9.46% from Walmart's current stock price of $100.85.

Walmart stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 18 analysts covering Walmart, 50% have issued a Strong Buy rating, 44.44% have issued a Buy, 5.56% 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 4.3%, which is 3 percentage points higher than the discount store industry average of 1.68%. 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 49% indicates that its high dividend yield is sustainable for the long-term.

Dollar General (NYSE:DG) has an annual dividend yield of 1.54%, which is the same as the discount store industry average of 1.68%. 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 45% indicates that its dividend yield is sustainable for the long-term.

Walmart (NYSE:WMT) has an annual dividend yield of 0.88%, which is -1 percentage points lower than the discount store industry average of 1.68%. 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 37.7% indicates that its dividend yield is sustainable for the long-term.

Discount store stocks were down -0.66% in the last day, and down -1.14% over the last week. Target was the among the top losers in the discount stores industry, dropping -1.18% yesterday.

Shares of Ulta Beauty and Target are trading lower after the companies mutually agreed not to renew the Ulta Beauty at Target shop-in-shop partnership when the current agreement concludes in August 2026.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued discount store stocks right now are:

Target (NYSE:TGT) is the most undervalued discount store stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Target has a valuation score of 43, which is 16 points higher than the discount store industry average of 27. It passed 3 out of 7 valuation due diligence checks.

Target's stock has dropped -27.28% in the past year. It has underperformed other stocks in the discount store industry by -42 percentage points.

Dollar General (NYSE:DG) is the second most undervalued discount store stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Dollar General has a valuation score of 43, which is 16 points higher than the discount store industry average of 27. It passed 3 out of 7 valuation due diligence checks.

Dollar General's stock has dropped -6.45% in the past year. It has underperformed other stocks in the discount store industry by -21 percentage points.

Pricesmart (NASDAQ:PSMT) is the third most undervalued discount store stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Pricesmart has a valuation score of 43, which is 16 points higher than the discount store industry average of 27. It passed 3 out of 7 valuation due diligence checks.

Pricesmart's stock has gained 27.2% in the past year. It has overperformed other stocks in the discount store industry by 13 percentage points.

75% of discount store stocks rated by analysts are a buy right now. On average, analysts expect discount store stocks to rise by 8.24% over the next year.

0% of discount store stocks have a Zen Rating of A (Strong Buy), 11.11% of discount store stocks are rated B (Buy), 77.78% are rated C (Hold), 11.11% are rated D (Sell), and 0% are rated F (Strong Sell).