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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.

Industry: Discount Stores
Ticker
Company
Country
Market Cap
Shares
Institutional %
Insider %
Net Insider (L12M)
Net Insider (L3M)
DLTR
DOLLAR TREE INC
United States
$33.16B221,184,47990.76%9.24%Net SellingNet Buying
WMT
WALMART INC
United States
$382.16B2,696,800,0546.41%93.59%Net SellingNet Selling
OLLI
OLLIE's BARGAIN OUTLET HOLDINGS INC
United States
$3.49B62,239,01379.40%20.60%Net SellingNet Selling
TGT
TARGET CORP
United States
$81.36B460,310,08878.90%0.94%Net SellingNet Selling
COST
COSTCO WHOLESALE CORP
United States
$228.43B443,729,03666.05%0.79%Net SellingNet Selling
BJ
BJ's WHOLESALE CLUB HOLDINGS INC
United States
$9.74B134,434,26974.36%25.64%Net SellingNet Selling
DG
DOLLAR GENERAL CORP
United States
$51.00B223,574,79990.74%0.12%Net SellingNet Buying
PSMT
PRICESMART INC
United States
$2.32B31,050,91738.52%61.48%Net SellingNet Selling
BIG
BIG LOTS INC
United States
$504.75M28,958,86585.21%14.79%Net SellingNet Selling

Discount Store Stocks FAQ

What are the best discount store stocks to buy right now in Feb 2023?

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 51, which is 8 points higher than the discount store industry average of 43. It passed 17 out of 33 due diligence checks and has strong fundamentals. Dollar Tree has seen its stock return 13.71% over the past year, overperforming other discount store stocks by 14 percentage points.

Dollar Tree has an average 1 year price target of $170.42, an upside of 13.68% from Dollar Tree's current stock price of $149.91.

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. Walmart (NYSE:WMT)


Walmart (NYSE:WMT) is the second best discount store stock with a Zen Score of 48, which is 5 points higher than the discount store industry average of 43. It passed 17 out of 38 due diligence checks and has strong fundamentals. Walmart has seen its stock return 0.51% over the past year.

Walmart has an average 1 year price target of $159.00, an upside of 12.2% from Walmart's current stock price of $141.71.

Walmart stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 30 analysts covering Walmart, 50% have issued a Strong Buy rating, 30% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Ollie's Bargain Outlet Holdings (NASDAQ:OLLI)


Ollie's Bargain Outlet Holdings (NASDAQ:OLLI) is the third best discount store stock with a Zen Score of 47, which is 4 points higher than the discount store industry average of 43. It passed 15 out of 33 due diligence checks and has strong fundamentals. Ollie's Bargain Outlet Holdings has seen its stock return 20.47% over the past year, overperforming other discount store stocks by 20 percentage points.

Ollie's Bargain Outlet Holdings has an average 1 year price target of $62.75, an upside of 11.75% from Ollie's Bargain Outlet Holdings's current stock price of $56.15.

Ollie's Bargain Outlet Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Ollie's Bargain Outlet Holdings, 41.67% have issued a Strong Buy rating, 25% have issued a Buy, 33.33% 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 6.88%, which is 5 percentage points higher than the discount store industry average of 2.36%. 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 -22.9% 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 2.85%, which is the same as the discount store industry average of 2.36%. 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 1.58%, which is -1 percentage points lower than the discount store industry average of 2.36%. 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 -2.08% in the last day, and up 1.28% over the last week.

We couldn't find a catalyst for why discount store stocks are down.

What are the most undervalued discount store stocks?

Based on WallStreetZen's Valuation Score, the 3 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 43, which is 18 points higher than the discount store industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Dollar Tree's stock has gained 13.71% in the past year. It has overperformed other stocks in the discount store industry by 14 percentage points.

2. Ollie's Bargain Outlet Holdings (NASDAQ:OLLI)


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 43, which is 18 points higher than the discount store industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Ollie's Bargain Outlet Holdings's stock has gained 20.47% in the past year. It has overperformed other stocks in the discount store industry by 20 percentage points.

3. Pricesmart (NASDAQ:PSMT)


Pricesmart (NASDAQ:PSMT) is the third most undervalued discount store stock based on WallStreetZen's Valuation Score. Pricesmart has a valuation score of 43, which is 18 points higher than the discount store industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Pricesmart's stock has gained 9% in the past year. It has overperformed other stocks in the discount store industry by 9 percentage points.

Are discount store stocks a good buy now?

55.56% of discount store stocks rated by analysts are a buy right now. On average, analysts expect discount store stocks to rise by 12% 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 37.39x.
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