Juniper Networks, Inc. (JNPR), Dollar General Corp. (DG): Today’s Three Best Stocks

It might seem counterintuitive to think that Dollar General Corp. (NYSE:DG), a store that specializes in deep discounts, would have any sort of trouble attracting customers in this environment, but delayed tax refunds and higher payroll taxes are putting off the discretionary higher-margin purchases that even dollar stores like Dollar General Corp. (NYSE:DG) count on to drive margin growth. This is the same problem retail chain Wal-Mart Stores, Inc. (NYSE:WMT) encountered in its most recent quarter, where same-store sales fell 1.4%. Consumers want a good deal, but they simply don’t have the cash to purchase discretionary items. That could be a recipe for volatile results for both Dollar General Corp. (NYSE:DG) and Wal-Mart Stores, Inc. (NYSE:WMT) over the next couple of quarters.

Finally, home-furnishings retailer Bed Bath & Beyond Inc. (NASDAQ:BBBY) rose 2% after research firm Nomura Holdings, Inc. (ADR) (NYSE:NMR) upgraded the company to “buy” from “neutral” with a price target of $82, implying 21% upside from yesterday’s close. The covering analyst, Arum Rubinson, still believes that concerns exist with regard to the company’s ties to the health of the housing market, but that Bed Bath & Beyond Inc. (NASDAQ:BBBY) is attractively valued relative to its peers. I happen to agree with Rubinson and have come around to the Bed Bath & Beyond Inc. (NASDAQ:BBBY) story as well, as it’s done a good job of managing its inventory and controlling its discounting over the past year. Barring a big decline in the housing sector, this company should continue to put up steady growth figures.

The article Today’s 3 Best Stocks originally appeared on Fool.com is written by Sean Williams.

Fool contributor Sean Williams owns shares of Bank of America, but has no material interest in any other companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of Bank of America and recommends Bed Bath & Beyond.

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