5 Best Discount Retailer Stocks to Buy

In this article, we will be taking a look at the 5 best discount retailer stocks to buy. To read our detailed analysis of the retail sector, you can go directly to see the 10 Best Discount Retailer Stocks to Buy.

5. Dollar Tree, Inc. (NASDAQ:DLTR)

Number of Hedge Fund Holders: 38

Dollar Tree, Inc. (NASDAQ:DLTR) is a consumer staples company operating discount variety retail stores. It is based in Chesapeake, Virginia.

Our hedge fund data for the third quarter shows 38 hedge funds long Dollar Tree, Inc. (NASDAQ:DLTR). Their total stake value was $2.3 billion.

Here’s what Madison Investments said about Dollar Tree, Inc. (NASDAQ:DLTR) in its fourth-quarter 2023 investor letter:

“The top five contributors for the quarter were Gartner, Dollar Tree, Inc. (NASDAQ:DLTR), Arista Networks, Glacier Bancorp, and Ross Stores. Shares in Dollar Tree rebounded nicely as investors applauded improved 3Q results that reflected another quarter of market share gains and no negative surprises in expenses. While it is early in the company’s multi-year investment period, we are encouraged by the solid results amid a challenging retail environment.”

4. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 58

Target Corporation (NYSE:TGT) is a general merchandise retailer based in Minneapolis, Minnesota. It operates a chain of discount department stores and hypermarkets.

Gordon Haskett’s Chuck Grom holds a Buy rating and a $170 price target on Target Corporation (NYSE:TGT) as of February 7.

In total, 58 hedge funds held stakes in Target Corporation (NYSE:TGT) in the third quarter, with a total stake value of $1.3 billion.

Madison Investments mentioned Target Corporation (NYSE:TGT) in its fourth-quarter 2023 investor letter:

“Target Corporation (NYSE:TGT) reported a solid third quarter with strong gross margin recovery despite slower traffic and sales. Gross margins rebounded from last year’s discounting and cost efficiencies. Same store sales were down -4.9% with traffic down -4.1%. Investors liked the strong margin recovery but will look for improving sales trends.”

3. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 65

An Outperform rating and a $750 price target were reiterated on Costco Wholesale Corporation (NASDAQ:COST) on February 8 by Telsey Advisory Group’s Joseph Feldman.

Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses in the US and internationally. It is based in Issaquah, Washington.

Costco Wholesale Corporation (NASDAQ:COST) was spotted in the portfolios of 65 hedge funds in the third quarter. Their total stake value was $3.6 billion.

This is what Madison Investments said about Costco Wholesale Corporation (NASDAQ:COST) in its fourth-quarter 2023 investor letter:

“Costco Wholesale Corporation (NASDAQ:COST) reported solid holiday results and announced a special dividend of $15 per share. Earnings were better than expected driven by better gross margin. Same store sales were 3.9% with solid traffic. Costco also noted better discretionary trends and solid seasonal sales.”

2. The TJX Companies, Inc. (NYSE:TJX)

Number of Hedge Fund Holders: 71

We saw 71 hedge funds long The TJX Companies, Inc. (NYSE:TJX) in the third quarter, with a total stake value of $1.9 billion.

The TJX Companies, Inc. (NYSE:TJX) is an off-price apparel and home fashion retailer. It is based in Framingham, Massachusetts.

Daniela Nedialkova at Redburn Atlantic holds a Neutral rating and a $100 price target on The TJX Companies, Inc. (NYSE:TJX) as of February 5.

1. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 80

Walmart Inc. (NYSE:WMT) is a consumer staples merchandise retailer based in Bentonville, Arkansas. It operates discount department stores, hypermarkets, and more.

There were 80 hedge funds long Walmart Inc. (NYSE:WMT) in the third quarter, with a total stake value of $5.9 billion.

See also 11 Best Retail Stocks To Buy Now and 10 Best Retail Dividend Stocks to Buy.