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:

Dollar General (NYSE:DG) 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 Dollar General (NYSE:DG) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: D, Financials: C, and AI: C.

Dollar General (NYSE:DG) has a Due Diligence Score of 42, which is 4 points higher than the discount store industry average of 38.

DG passed 14 out of 38 due diligence checks and has strong fundamentals. Dollar General has seen its stock return 66.29% over the past year, overperforming other discount store stocks by 63 percentage points.

Dollar General has an average 1 year price target of $128.13, a downside of -3.21% from Dollar General's current stock price of $132.37.

Dollar General stock has a consensus Buy recommendation according to Wall Street analysts. Of the 16 analysts covering Dollar General, 25% have issued a Strong Buy rating, 12.5% have issued a Buy, 62.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) 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 Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) has a Due Diligence Score of 52, which is 14 points higher than the discount store industry average of 38.

OLLI passed 17 out of 33 due diligence checks and has strong fundamentals. Ollie's Bargain Outlet Holdings has seen its stock return 20.98% over the past year, overperforming other discount store stocks by 18 percentage points.

Ollie's Bargain Outlet Holdings has an average 1 year price target of $144.54, an upside of 19.13% from Ollie's Bargain Outlet Holdings's current stock price of $121.33.

Ollie's Bargain Outlet Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Ollie's Bargain Outlet Holdings, 53.85% have issued a Strong Buy rating, 7.69% have issued a Buy, 38.46% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Dollar Tree (NASDAQ:DLTR) 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 Dollar Tree (NASDAQ:DLTR) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Dollar Tree (NASDAQ:DLTR) has a Due Diligence Score of 15, which is -23 points lower than the discount store industry average of 38.

DLTR passed 5 out of 33 due diligence checks and has weak fundamentals. Dollar Tree has seen its stock return 68.74% over the past year, overperforming other discount store stocks by 65 percentage points.

Dollar Tree has an average 1 year price target of $115.06, a downside of -6.02% from Dollar Tree's current stock price of $122.44.

Dollar Tree stock has a consensus Buy recommendation according to Wall Street analysts. Of the 16 analysts covering Dollar Tree, 43.75% have issued a Strong Buy rating, 6.25% have issued a Buy, 25% have issued a hold, while 18.75% have issued a Sell rating, and 6.25% 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 4.9%, which is 3 percentage points higher than the discount store industry average of 1.74%. 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 54.6% indicates that its high dividend yield is sustainable for the long-term.

Dollar General (NYSE:DG) has an annual dividend yield of 1.34%, which is the same as the discount store industry average of 1.74%. 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 40.7% indicates that its dividend yield is sustainable for the long-term.

Pricesmart (NASDAQ:PSMT) has an annual dividend yield of 0.98%, which is -1 percentage points lower than the discount store industry average of 1.74%. Pricesmart's dividend payout is not stable, having dropped more than 10% one times 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.

Discount store stocks were up 0.96% in the last day, and up 1.59% over the last week. Dollar General was the among the top gainers in the discount stores industry, gaining 5.65% yesterday.

Dollar General shares are trading higher after multiple analysts raised their price targets on the stock.

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 A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Target has a valuation score of 43, which is 13 points higher than the discount store industry average of 30. It passed 3 out of 7 valuation due diligence checks.

Target's stock has dropped -28.63% in the past year. It has underperformed other stocks in the discount store industry by -32 percentage points.

Dollar General (NYSE:DG) is the second 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.

Dollar General has a valuation score of 43, which is 13 points higher than the discount store industry average of 30. It passed 3 out of 7 valuation due diligence checks.

Dollar General's stock has gained 66.29% in the past year. It has overperformed other stocks in the discount store industry by 63 percentage points.

Dollar Tree (NASDAQ:DLTR) 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.

Dollar Tree has a valuation score of 14, which is -16 points higher than the discount store industry average of 30. It passed 1 out of 7 valuation due diligence checks.

Dollar Tree's stock has gained 68.74% in the past year. It has overperformed other stocks in the discount store industry by 65 percentage points.

62.5% of discount store stocks rated by analysts are a buy right now. On average, analysts expect discount store stocks to rise by 12.86% 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).