Dollar Store Stocks Heating Up After Long Cooldown

Dollar store shares are attracting buying interest after a long period of underperformance​ and could test 2016 highs in coming months. This rally bodes well for other companies that focus on the lower end of the economic spectrum, including tobacco manufacturers and payday lenders. It also reflects the slow but steady transition of dollar store revenue from brick-and-mortar sales onto the internet

These companies tend to outperform other retailers when economic conditions start to deteriorate, forcing more families to pinch pennies with coupons, cheaper staples and more generic products. There is no evidence that this is happening yet, given healthy monthly data, but the bullish price action of the dollar store stocks matches natural long-term cycles, with the current expansion now in an unprecedented ninth year. (See also: Are Dollar Stores Really a Bargain?)

Dollar store stocks have lifted well above lows posted after major 2016 declines and could attract strong buying power. …read more

Read more here: Dollar Store Stocks Heating Up After Long Cooldown

Category: DLTR, DG

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