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.
(A Top Pick Jun 11/20, Up 13%) He sold. Still likes the company, but he had better ideas in the near-term. Windfall last year, as it was an essential retailer. This year, comparisons will lag and some aisles are off-limits as non-essential.
Sell Costco to buy DLTR? Costco is very well run, but their challenge is always growth. And their forward PE is 35x, which is high. Whereas DLTR trades at 17x, driven by growth and expansion. Long-term, DLTR has earnings growth and multiple expansion and a better total return over 5-7 years than Costco.
Stockchase Research Analyst: Michael O'Reilly DG recently reported EPS at $2.82 versus $2.14 expectations. Higher profit margins helped contribute. Management updated EPS guidance to $9.50-$10.20 for the year, compared to $8.80-$9.50 previously. Analysts target EPS at $9.63. It pays a modest dividend, backed by a 16% payout ratio. We would buy this with a stop…
(A Top Pick Dec 08/20, Up 40.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BIG is progressing well. We are now recommending to trail up the stop (from $45) to $60. If triggered, this would all but insure a total investment return over 29%, including the previous recommendation to cover 50% of the…
A good long-term investment, but it swoons at times without a catalyst. Wait for that swoon to step in.