WallStreetZenWallStreetZen

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.

Industry: Discount Stores
Ticker
Company
Country
Market Cap
Shares
Institutional %
Insider %
Net Insider (L12M)
Net Insider (L3M)
WMT
WALMART INC
United States
$556.93B8,043,543,33012.10%87.90%Net SellingNet Selling
PSMT
PRICESMART INC
United States
$2.55B30,638,99337.96%62.04%Net SellingNet Selling
OLLI
OLLIE's BARGAIN OUTLET HOLDINGS INC
United States
$6.24B61,366,74778.25%21.75%Net SellingNet Selling
TGT
TARGET CORP
United States
$70.71B462,636,57378.37%0.99%Net SellingNet Selling
DG
DOLLAR GENERAL CORP
United States
$29.12B219,894,65290.77%0.30%Net Selling
BJ
BJ's WHOLESALE CLUB HOLDINGS INC
United States
$12.00B132,709,07975.25%24.75%Net SellingNet Selling
COST
COSTCO WHOLESALE CORP
United States
$373.69B443,335,02467.28%0.84%Net SellingNet Selling
DLTR
DOLLAR TREE INC
United States
$23.08B214,944,00090.24%9.76%Net BuyingNet Selling
BIG
BIG LOTS INC
United States
$30.87M29,681,97360.39%25.33%Net Selling
TBBB
BBB FOODS INC
Mexico
$2.85B112,200,75227.96%0.00%

Discount Store Stocks FAQ

What are the best discount store stocks to buy right now in Jul 2024?

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

1. Walmart (NYSE:WMT)


Walmart (NYSE:WMT) is the top discount store stock with a Zen Score of 52, which is 17 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 33.98% over the past year, overperforming other discount store stocks by 8 percentage points.

Walmart has an average 1 year price target of $73.40, an upside of 6% from Walmart's current stock price of $69.24.

Walmart stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 27 analysts covering Walmart, 62.96% have issued a Strong Buy rating, 29.63% have issued a Buy, 7.41% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Pricesmart (NASDAQ:PSMT)


Pricesmart (NASDAQ:PSMT) is the second 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 8.54% over the past year, underperforming other discount store stocks by -17 percentage points.

Pricesmart has an average 1 year price target of $90.00, an upside of 8.1% from Pricesmart's current stock price of $83.26.

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.

3. Target (NYSE:TGT)


Target (NYSE:TGT) is the third best discount store stock with a Zen Score of 46, which is 11 points higher than the discount store industry average of 35. It passed 16 out of 38 due diligence checks and has strong fundamentals. Target has seen its stock return 15% over the past year, underperforming other discount store stocks by -11 percentage points.

Target has an average 1 year price target of $180.18, an upside of 17.88% from Target's current stock price of $152.85.

Target stock has a consensus Buy recommendation according to Wall Street analysts. Of the 28 analysts covering Target, 42.86% have issued a Strong Buy rating, 17.86% have issued a Buy, 35.71% have issued a hold, while 3.57% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the discount store stocks with highest dividends?

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:

1. Target (NYSE:TGT)


Target (NYSE:TGT) has an annual dividend yield of 2.88%, which is 1 percentage points higher than the discount store industry average of 2.11%. 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 49.2% indicates that its dividend yield is sustainable for the long-term.

2. Pricesmart (NASDAQ:PSMT)


Pricesmart (NASDAQ:PSMT) has an annual dividend yield of 2.45%, which is the same as the discount store industry average of 2.11%. Pricesmart's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Pricesmart's dividend has shown consistent growth over the last 10 years.

Pricesmart's dividend payout ratio of 49.5% indicates that its dividend yield is sustainable for the long-term.

3. Costco (NASDAQ:COST)


Costco (NASDAQ:COST) has an annual dividend yield of 2.28%, which is the same as the discount store industry average of 2.11%. 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 118.9% indicates that its dividend yield might not be sustainable for the long-term.

Why are discount store stocks up?

Discount store stocks were up 0.15% in the last day, and down -1.27% over the last week.

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

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. Bj's Wholesale Club Holdings (NYSE:BJ)


Bj's Wholesale Club Holdings (NYSE:BJ) is the most undervalued discount store stock based on WallStreetZen's Valuation Score. Bj's Wholesale Club Holdings 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.

Bj's Wholesale Club Holdings's stock has gained 38.21% in the past year. It has overperformed other stocks in the discount store industry by 13 percentage points.

2. Walmart (NYSE:WMT)


Walmart (NYSE:WMT) is the second most undervalued discount store stock based on WallStreetZen's Valuation Score. Walmart 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.

Walmart's stock has gained 33.98% in the past year. It has overperformed other stocks in the discount store industry by 8 percentage points.

3. Target (NYSE:TGT)


Target (NYSE:TGT) is the third most undervalued discount store stock based on WallStreetZen's Valuation Score. 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 gained 15% in the past year. It has underperformed other stocks in the discount store industry by -11 percentage points.

Are discount store stocks a good buy now?

50% of discount store stocks rated by analysts are a buy right now. On average, analysts expect discount store stocks to rise by 7.24% 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 35x.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.