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The Rise of Discount Retail Stocks

Amazon (AMZN) has been putting mall-based retailers out of commission, but a slew of discount retailers continue to drive sales and profits higher.

Big-box retailers Walmart (WMT) and Costco (COST) have had great stocks, but in both cases the stock surge has been better than the data has been. WMT might not even grow profits this year. COST stock has been super, but the stock’s P/E ratio is higher than it has been historically.

Five Below (FIVE) and Olli’s Bargain Outlet (OLLI) are a new breed of specialty retailers that are growing rapidly. Both stores have benefited from the demise of Toys-R-Us.

And of course, old school discounters Dollar General (DG) and TJX (TJX) — the parent of TJ Maxx and Marshalls — continue to deliver investor returns (and dividends as well.
Here’s our take on the top discount stocks in America: