Top 5 Dollar Stores Stocks that Could Beat Amazon

Melisa R. H. Posted On January 29, 2019

Dollarama may be the giant that everyone thinks of when talking about dollar stores, but there are many promising names that have growth potential. No business is immune to Amazon but dollar stores have historically been able to make their way ahead of Walmart and are still growing strong in the low cost niche.

Here are 5 dollar store stocks that could compete with the e-commerce giant.

🛍 Consumer

Dollarama Inc. (DOL-T)

Dollarama Inc. (DOL-T) — Stockchase

A star in Canada due to great execution and lack of competition. Shift to multiple price points is a winning strategy. Carved out a niche in Canada.

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Dollar Tree (DLTR-Q)

Dollar Tree (DLTR-Q) — Stockchase

DLTR vs. DG Sold a couple of months ago on poor performance. Questions about health of lower-income consumer have been flagged on conference calls, and this concern is creeping up even to the medium-income consumer. Taking steps to increase price points. An improving consumer would be a tailwind. If he had to choose, this would…

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Dollar General Corp. (DG-N)

Dollar General Corp. (DG-N) — Stockchase

DG vs. DLTR Questions about health of lower-income consumer. Both companies have flagged this on conference calls. DLTR is taking steps to increase price points, and an improving consumer would be a tailwind. If he had to choose, DLTR would be his pick.

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Big Lots Inc (BIG-N)

Big Lots Inc (BIG-N) — Stockchase

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. BIG's small size ($141M) and debt ($2.3B) and losses ($180M last year) do make it very financially risky. Bloomberg calculates a 'default risk ratio' and it is 27.3%, about as high as we see on a company that has yet to restructure. The dividend was…

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Five Below Inc (FIVE-Q)