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 growth company, adding stores. They've built their brand and are well-managed. However, they had a few quarters where same-store sales disappointed, so the stock got hit. But there's still room for them to grow in Canada. A decent place to put your money if you're long-term and don't need a big dividend. (Douglas Kee)
The only dollar store that still fits the description. If they increased prices, they could meaningfully increase revenues and earnings. Management has resisted, but there's pressure to do this. This would add $2 per share to earnings. No dividend. (Analysts’ price target is $100.44) (Veronika Hirsch)
$24 billion in revenues. Largest discount retailer in the US with 15,000 stores in 44 States. Over 75% of sales come from recurring sales of consumables (paper, perishable foods, etc). Late cycle this is a defensive name. Often in rural locations far form the WalMarts and other competitors. Trading at 18 times forward earnings. 21%…
A fun place to shop. Technically it has formed a strong bottom at $40. A recent bullish breakout has him interested. It could re-test $46, but expects it to fill the gap back up near $53 and would use $44 as his first stop. Yield 2.6%. (Analysts’ price target is $46.27) (Jeff Parent B. Eng.…
It was a Top Pick a couple of years ago. It has run up so much that the valuation is on the high end. It can ebb and flow. Wait for a couple of quarters where same store sales are weak and then get in. Now is not the time. (Teal Linde)