For Bargain Stock Deals, Look to Discount Retailers

For shoppers looking for bargains, discount retailers offer a great way to buy
thriftily. Wholesalers and deep-discount stores offer a wide variety of
products, often in bulk, for extremely cheap prices. During times of economic
recession, more and more consumers turn to discount retailers. Getting the
biggest bang for your buck is necessary when income is being stretched thin by
higher prices and lower employment rates. Thats why I want to draw your
attention to two deep-discount retailers. The performance of this segment of
retailers has consistently strengthened and will continue to do so in the coming
months. Of course, as in any sector, some companies are better investments than
others. Heres a snapshot view of two competing discount retailers. The Dollar
Darling One of my favorite deep-discount investments right now is Dollar Tree
(NASDAQ: DLTR ). For more than fifty years, the company has offered customers
one-stop bargain options. Today, you can go into the store and pick up
everything from gift wrap and toys, to cleaning products and dishware to school
and office supplies. The kicker: Everything has a price tag of $1 ! Saying its
hard to find a better deal elsewhere is really an understatement. Dollar Trees
variety and cheap pricing has sent customers flocking to its 4,000 locations
throughout the U.S. A pickup in sales has boosted the stocks value and drawn
investor attention during the past few months. DLTR is up almost 60% in the past
year and 40% in the past six months. Its no secret why the company has been
A-rated in Portfolio Grader for the last year. Dollar Deals for the Whole Family
Another popular dollar-discount chain is Family Dollar (NYSE: FDO ). Like Dollar
Tree, Family Dollar offers a diverse assortment of products for low prices.
Since the company opened its doors in 1959, the Family Dollar chain has grown to
over 7,000 stores across 44 states. The discount retailer offers customers
everything from clothing and accessories to home decor to grocery products. And
all of their products are bargain-priced in rounded-dollar increments, usually
below the $20 mark. If you are looking for good shopping deals, the Family
Dollar really does offer something for the whole family. As an investment, FDO
also proves to be a solid steal. The company reported its latest quarterly
earnings today, and fourth-quarter profits grew a whopping 8%. For the full year
it is expected that the stock will be up over 17% from 2010 values, a tidy
pickup considering current conditions. FDO definitely has its merits as a
discount retailer, but when it comes down to it, DLTR is a much better retail
stock. Overall, cheaper store prices and stronger growth potential (21.3% vs.
17.9%) for the year make Dollar Tree a more solid, long-term investment heading
into the holidays.