Which discount store stock is a better buy? By StockNews

With over 50% of the US population fully vaccinated, people are going back to physical stores. This is clear from recent reports showing better than expected retail sales in September, despite rising inflation. Thus, discount retailers Costco (COST) and Dollar General (DG) are expected to benefit from increased foot traffic and consumer spending. But which of these titles is the best choice now? Learn more to find out. Costco Wholesale Corporation (NASDAQ :), headquartered in Issaquah, Washington, operates member warehouses in United States, Puerto Rico, Canada, United Kingdom, Mexico, Japan, Korea, Australia , in Spain, France, Iceland, China and Taiwan. It offers branded and private label products in a range of merchandise categories. By comparison, Dollar General Corporation (NYSE 🙂 based in Goodlettsville, Tennessee, supplies a variety of commodity products to the South, Southwest, Midwest, and Eastern United States. Its offerings include consumables, seasonal items, home products and clothing.

Discount stores have seen a significant drop in foot traffic last year due to the COVID-19 pandemic. However, with substantial progress on the immunization front, students returning to school and workers returning to their jobs, retail sales are increasing this year. Retail sales in September exceeded analysts’ expectations, despite inflationary pressures, according to an advance estimate from the US Census Bureau. Thus, discount stores offering merchandise at reduced prices are expected to attract more customers, and COST and DG are both well positioned to take advantage of the recovery in demand.

COST shares have gained 24.6% over the past six months, while DG is down 1.4%. In terms of last year’s performance, COST is the winner again with gains of 21.1% against GM’s 3.6% drop. Additionally, COST’s 22.6% price gains year-to-date compares to DG’s 1.6% returns.

Continue reading on StockNews

Warning: Fusion media would like to remind you that the data contained in this site is not necessarily real time or accurate. All CFDs (stocks, indices, futures) and Forex prices are not provided by the exchanges but rather by market makers. The prices may therefore not be exact and differ from the actual market price, which means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media assumes no responsibility for any business losses that you may incur as a result of the use of such data.

Fusion media or anyone involved with Fusion Media will not accept any responsibility for any loss or damage resulting from reliance on any information, including data, quotes, graphics and buy / sell signals contained in this website. Please be fully informed about the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investing possible.