Family Dollar Stores, Inc. (FDO), Dollar General Corp. (DG): Are Dollar Stores Good Buys?

Finally, Dollar Tree, Inc. (NASDAQ:DLTR) also recently reported solid Q4 2012 numbers with same-store sales rising 2.4%, diluted earnings per share of 26% along with an increase in net sales of about 15%. Overall, for 2012, the outfit said same-store sales increased 3.4% while net sales increased 11.5%.

Dollar Tree, Inc. (NASDAQ:DLTR)’s revenue has climbed a bit more than 8%, which is better than the sector average of 6%. Moreover, its share price has climbed more than 20% this year. Shares are presently hovering at about $49, lower than the 52-week high that came close to $57/share, so there should be more room to grow here.

The bottom line

Dollar stores will continue to gain market share according to many analysts. And each of these outlets will continue to see long-term revenue growth, which means continued earnings growth. In other words, the discount kids offer good buys for both consumers and ordinary investors.

Kyle Colona is a freelance writer from the New York area with a broad background in legal and regulatory affairs in the finance sector. His extensive body of work is accessible on the web. Mr. Colona is not a financial advisor and he does not hold a position in the stocks mentioned herein. This article is for informational purposes only and should not be construed as financial advice.

The article Are Dollar Stores Good Buys? originally appeared on Fool.com and is written by Kyle Colona.

Kyle is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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