Top Dollar Store Stocks WarrenAI Says to Watch in 2026

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Gladstone Commercial Corporation - REIT

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Dollar Tree

+0.24%

Summary:

Investing.com -- The dollar store sector has seen remarkable shifts in 2026, with several key players delivering exceptional...

Investing.com -- The dollar store sector has seen remarkable shifts in 2026, with several key players delivering exceptional returns amid changing consumer spending patterns. According to WarrenAI’s comprehensive analysis using Investing Pro metrics, certain stocks stand out for their combination of value, growth potential, and financial strength.

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Dollar General has emerged as the clear leader in the dollar store space, with its impressive turnaround story capturing investor attention. Five Below continues its growth trajectory with strong momentum, while Canadian retailer Dollarama demonstrates superior profitability despite valuation concerns. Dollar Tree rounds out the top performers but faces mixed signals ahead.

Here’s a closer look at the top dollar store stocks of 2026:

1. Dollar General (NYSE:DG): The Comeback King

Dollar General has delivered an extraordinary 100.8% return over the past year, establishing itself as the sector’s standout performer. The company offers a healthy 3.4% dividend yield alongside 23.8% analyst target upside. With a forward P/E of 21.8x and a FAIR Pro Score of 2.44, DG shows balanced fundamentals. Technical indicators are particularly encouraging, with strong buy signals across weekly and monthly timeframes. The company’s expanding delivery capabilities and aggressive store remodeling initiatives have successfully driven market share gains, while its business model continues to resonate with value-conscious consumers.

In recent developments, JPMorgan upgraded Dollar General to Overweight, citing its growth initiatives. The company also expanded its same-day delivery service to more than 17,000 stores nationwide.

2. Five Below (NASDAQ:FIVE): Growth Meets Momentum

Five Below has rewarded investors with a 96.0% one-year return, powered by exceptional growth prospects. The company boasts the sector’s highest projected EPS growth at 38.7% for 2026 and substantial analyst target upside of 30.6%. Its GOOD Pro Score of 2.71 reflects solid financial health, though the 29.5x forward P/E indicates investors are paying a premium for this growth story. Five Below’s success stems from its agile merchandising approach, focus on trending products, and ambitious store expansion strategy. Technical indicators remain bullish across all major timeframes, supporting continued momentum.

Five Below reported a strong holiday performance, featuring a 14.5% comparable sales increase. Following the results, several firms, including UBS and Truist Securities, raised their price targets for the company.

3. Dollarama (TSX:DOL): The Canadian Profit Machine

Dollarama stands out for its exceptional profitability metrics, including a 26.5% EBITDA margin and remarkable 148.9% ROE. The Canadian retailer has delivered a 33.1% one-year return and recently exceeded earnings expectations. However, with a -16.9% fair value upside and a 39.0x forward P/E, much of Dollarama’s quality appears priced into the stock. Nevertheless, analysts maintain optimism with a C$211.38 mean price target, representing 8.3% upside potential. The company’s GOOD financial score continues to attract quality-focused investors despite the premium valuation.

Dollarama surpassed third-quarter earnings and revenue expectations. Additionally, Moody’s Ratings changed the company’s outlook to positive from stable, citing its strengthening business profile and track record of growth.

4. Dollar Tree (NASDAQ:DLTR): Value Play or Value Trap?

Dollar Tree has posted a solid 57.5% one-year return but now faces conflicting signals. The stock offers modest fair value upside of 4.1% and reasonable projected EPS growth of 23.6% for 2026. With a 9.1% analyst target upside and a relatively attractive 19.6x forward P/E, DLTR appears reasonably valued. However, technical indicators have turned negative, with strong sell signals on most timeframes. The company’s FAIR Pro Score of 2.17 reflects adequate but unexceptional financial health. Key challenges include executing its digital strategy and maintaining brand identity amid ongoing pricing adjustments.

Dollar Tree appointed Daniel Delrosario as its new Senior Vice President of Investor Relations and Treasurer. The company also received a price target increase from Truist Securities, which maintained a Buy rating on the stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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What a Warsh Fed Would Mean for Interest Rates and Inflation Policy — Barrons.com

Dow Jones Newswires

By Megan Leonhardt

Kevin Warsh, President Donald Trump's nominee for the next chair of the Federal Reserve, may be a pick out of "central casting," as the president says. But some economists are skeptical that he will deliver interest-rate cuts quickly, while keeping the central bank's goals of price stability and maximum employment in balance.

In the past year, labor conditions have weakened, while annual inflation has been much closer to 3% than the Fed's 2% goal. Warsh, if confirmed, will inherit this economic reality, which could make it difficult to realize Trump's vision of dramatically lower interest rates.

The challenge will come, in part, because the chair is only one of the 12 members of the Federal Open Market Committee who vote on monetary policy, including changes in interest rates. Warsh will need to build a coalition to meaningfully alter the current policy path, says Olu Sonola, U.S. head of economic research at Fitch Ratings. That may be challenging, given the current makeup of the voting members of the Fed, several of whom are seen as much more hawkish, or wary of cutting rates while inflation remains elevated.

Dallas Fed President Lorie Logan and Cleveland Fed President Beth Hammack both have stressed the risks around easing rates early while inflation remains above target. Minneapolis Fed President Neel Kashkari, also voting this year, was seen as one of the committee's dovish voices, but lately has focused more on the persistence of inflation. All three voted to keep interest rates steady at the Jan. 27-28 policy meeting.

Only two FOMC members, Fed governors Christopher Waller and Stephen Miran, voted to lower interest rates at the meeting. Waller said in a statement on Friday that the economic data around labor conditions make it clear that further easing is needed. Vice Chair for Supervision Michelle Bowman, who voted with the majority to keep rates steady, is also seen as a more dovish member.

"Warsh — like any other pick — has an uphill climb to convince the rest of the FOMC of his vision for monetary policy, which isn't readily apparent," says Mike Skordeles, head of U.S. economics at Truist Advisory Services. "Ultimately, while the Fed chair is certainly important, many other factors are more important to economic growth."

Fed chairs aren't "all powerful," says Jonathan Pingle, chief U.S. economist at UBS. Pingle noted that the longest-serving Fed chair, William McChesney Martin Jr., won policy votes by only a single vote, while Paul Volcker once lost a policy vote.

Yet as Trump's nominee, Warsh is expected to bring a more nuanced approach to the Fed's leadership, particularly as he has expressed skepticism that the Fed is an "all-powerful, all-knowing institution," writes Jai Kedia, Cato research fellow at the Center for Monetary and Financial Alternatives. That could be a positive sign for critics who have long held that the Fed is too slow to act.

Still, Warsh's background as an inflation hawk suggests he may be in a tough spot to argue for lower rates, given that price growth has been above 2% for the past five years.

"He's a stone-cold hard money guy, who would like the Fed to do much less with its balance sheet; to significantly reduce its bond-buying, at least in normal times; and to upweight the inflation mandate relative to the employment mandate," writes Jared Bernstein, former chair of the Council of Economic Advisers under President Joe Biden.

Warsh has argued recently that artificial intelligence and deregulation could push inflation down over time, which may make his stance less clearly hawkish once on the committee, Sonola says. But again, revamping how the institution thinks about inflation may be difficult — especially since the FOMC unanimously approved its "Statement on Longer-Run Goals and Monetary Policy Strategy" this past week.

Warsh may find his fellow committee members more receptive to his consistent advocacy for a smaller Fed balance sheet, writes Michael Feroli, chief U.S. economist at J.P. Morgan. "Some committee members have already been speaking that way; so, he wouldn't be a lone voice," Feroli says. "It might require complementary changes in implementation and regulatory policies, but those are likely doable."

Feroli is skeptical, however, that a smaller balance sheet implies lower interest rates — an argument that Warsh has put forward previously. Rather, Feroli expects that a smaller Fed balance sheet could exert moderate upward pressure on longer-term interest rates. "This would be at odds with the administration's apparent desire to lower mortgage rates," he writes.

Warsh's fans think he can thread the needle on both policy and politics. "Kevin Warsh is well above the bar on both substance and independence to be chair of the Federal Reserve," writes Jason Furman, former chair of the Council of Economic Advisers under President Barack Obama.

"Markets remember him as a crisis-era governor with strong views on the institution's direction, and his return will help define the next phase of U.S. rate policy, balance sheet strategy, and central bank communication," writes Christian Hoffmann, head of fixed income at Thornburg Investment Management.

Write to Megan Leonhardt at megan.leonhardt@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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DraftKings stock falls after New York betting data disappoints

Investing.com

Advanced Micro Devices

Investing.com -- DraftKings (NASDAQ:DKNG) stock fell 7% and Flutter Entertainment (NYSE:FLUT) shares dropped 2% after New York state wagering data revealed weaker-than-expected performance.

New York state gross gaming revenue (GGR) declined 31% YoY while handle increased just 2% YoY for the week ended January 25, resulting in what JPMorgan analyst Daniel Politzer described as "a very unfavorable" 4.7% hold rate. This marks the fourth consecutive week of low or negative handle growth in New York, following a December where handle broadly declined across the United States.

"On top of low hold, this weekly result won’t do much to quell investor unease re: handle growth," Politzer noted in his analysis. The analyst added that first-quarter-to-date, GGR is tracking 13% higher YoY, while handle—the total amount of money wagered—is tracking 3% lower YoY, with hold of 10.5% (up 150 basis points YoY).

The disappointing data comes at a critical time for sports betting companies, which typically see significant activity during the NFL playoff season leading up to the Super Bowl.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Stocks slide as precious metals trade unwinds after Fed chair Warsh pick

Investing.com

Investing.com -- Wall Street slid on Friday, as risk-off sentiment gripped market participants. A spectacular unwinding of the precious metals trade, along with hotter-than-expected producer inflation data, clouded the mood. The big news of the day was President Donald Trump’s nomination of former Federal Reserve governor Kevin Warsh as the new central bank chair.

At 13:48 ET (18:48 GMT), the benchmark S&P 500 index dropped 0.7% to 6,918.90 points, the tech-heavy NASDAQ Composite slipped 1% to 23,442.96 points, and the blue-chip Dow Jones Industrial Average fell 0.8% to 48,659.91 points.

After a massive runup, precious metals cratered as investors locked in their massive gains. Gold prices were headed for their worst day in decades, while silver was headed for its worst day ever.

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Warsh nominated for Fed chair role

"(Warsh) will go down as one of the GREAT Fed Chairmen, maybe the best," Trump said on his Truth Social service in announcing his pick.

Warsh had been considered one of the frontrunners for the job. His nomination comes at a time when Trump is at odds with current Fed Chair Jerome Powell over the state of interest rates.

Trump has long ridiculed Powell for not lowering rates and has threatened to fire him. His administration has opened an investigation into the central bank chief, an action that Powell in an extraordinary move said was because of the Fed not taking rate decisions based on the president’s preference.

"Market moves are relatively muted considering the magnitude of the change. That’s largely because Warsh was both an unsurprising pick and someone who is already a known figure in Fed circles," Steve Sosnick, chief strategist at Interactive Brokers, told Investing.com.

Warsh served as a Fed Governor from 2006 to 2011. He lost out to Powell for the Fed chair role in 2017. Recently, Warsh has largely aligned himself with Trump’s calls for lower rates in the past year, but was a long-time critic of the ultra-loose monetary policy pursued by the Fed since the financial crisis, including the central bank’s expanded balance sheet.

"Stocks may be a bit disappointed in that he is not particularly dovish – odd considering that the president seemed to really want someone who would share his desire for lower rates," Sosnick added.

Warsh’s nomination will likely ease concerns about the independence of the Fed in light of his history and past hawkishness.

Elsewhere, Trump publicly endorsed a bipartisan spending deal negotiated by Senate Republicans and Democrats that would avert a looming government shutdown, posting support on Truth Social and urging cooperation.

The compromise would fund most federal agencies while leaving contentious immigration issues for further negotiation.

Reports said Democrat and Republican leaders had also agreed to the deal, although it remained unclear when Congress will vote on the matter. Lawmakers have until midnight, Friday, to release more spending for the federal government.

Hot December producer inflation

Traders also received some economic data before the opening bell that further reinforced the Fed’s decision earlier this week to hold interest rates steady.

The core December producer price index (PPI) came in 0.7% higher on a M/M basis, and 3.3% higher on a Y/Y basis. Both figures were well above the consensus estimates.

The delayed PPI data suggested that inflation was still very much a sticky problem.

"PPI data was hot. The three month and six month moving averages hottest since 2022," Diane Swonk, chief economist at KPMG U.S., said.

"The components that feed into the Federal Reserve’s target measure of inflation, the PCE index were not as bad but underscore why the Fed needs to pause and see what shows up. It is the reason that Chair Powell was cautious on not declaring victory over inflation yet," she added.

Apple’s iPhone sales surge

In the corporate sector, investors received more earnings from the likes of Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), American Express (NYSE:AXP), and Verizon (NYSE:VZ).

After the close Thursday, Apple (NASDAQ:AAPL) comfortably beat profit and revenue expectations for the holiday quarter, its fiscal first quarter, enjoying its best quarterly iPhone sales growth performance in over four years.

iPhone sales jumped 23.3% year-on-year to $85.27 billion, marking the biggest increase since the fourth quarter of 2021.

The tech giant also forecast higher-than-expected revenue growth of up to 16% for the March quarter, powered by strong demand for its iPhones and a sharp rebound in China and accelerating demand in India.

Still, Apple’s shares slipped over 1% lower as sales in other parts of the company were less positive.

Verizon (NYSE:VZ) stock jumped after the telecoms giant reported fourth-quarter earnings and revenue that exceeded expectations, while providing an upbeat outlook for 2026 that signals the beginning of a strategic turnaround.

Chevron (NYSE:CVX) stock rose after its oil major’s fourth-quarter profits fell but came in ahead of estimates as it focused on cutting costs and making its operations more efficient to contend with lower crude prices throughout 2025.

In other moves, SanDisk (NASDAQ:SNDK) shares surged after the storage-chip maker delivered a significant profit beat and raised guidance, as demand for data-center and AI-related memory products outpaced forecasts.

Gold, silver bloodbath

Gold prices crashed, as Warsh’s nomination quelled central bank independence concerns. Those worries had added to gold’s lure as a safe haven, contributing to the yellow metal’s recent massive runup.

After nearing $5,600/oz early on Wednesday, profit-buyers finally stepped in to lock some profits, halting Spot gold’s eight-day win streak.

Spot gold was last down 9.4% to $4,857.91/oz, while Gold Futures for April fell 8.8% to $4,889.70/oz.

Other precious metals also slumped on Friday after logging wild swings this week. Spot silver slid a whopping 26.3% to $84.15/oz, tumbling from a Thursday record high, while spot platinum slid 19.2% to $2,115.30/oz.

Oil prices fell, halting a three-day rally, though they were on track for hefty weekly gains as traders focused on potential U.S. military action against Iran.

Brent Oil Futures were last down 1.1% to $68.86 a barrel, and Crude Oil WTI Futures were also lower by 1.1% to $64.72 a barrel.

Both benchmarks were set to gain over 7% this week.

The Organization of Petroleum Exporting Countries and allies, known as OPEC+, is set to meet on Sunday, with recent reports indicating that the cartel is likely to keep its output unchanged.

Ambar Warrick, Ayushman Ojha, and Peter Nurse contributed to this report

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Tesla, AMD among market cap stock movers on Friday

Investing.com

Friday’s market has seen significant swings in various stocks based on news and other factors. Today, stocks like Tesla (TSLA) are gaining, while others like AMD (AMD) are facing declines. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers (Market Cap:$200 billion USD or higher)

KLA-Tencor Corp (KLAC); -13.58%
Advanced Micro Devices (AMD); AMD quickly falls 5.1%; -5.13%
Applied Materials Inc (AMAT); -3.84%
Lam Research Corp (LRCX); -4.05%
Tesla Motors (TSLA); Elon Musk’s SpaceX is said to consider merger with Tesla or xAI - Bloomberg; +4.6%
Intel Corp (INTC); -2.88%
American Express (AXP); American Express nearing deal for the last office tower at NYC’s WTC; -3.07%
Palantir Technologies Inc (PLTR); -2.75%
Metropcs Communications (TMUS); +4.05%
Facebook Inc (META); -2.81%

Large-Cap Stock Movers (Market Cap:$10-$200 billion USD)

Unity Software Inc (U); -22.41%
Coeur d’Alene Mines Corp (CDE); -14.41%
Deckers Outdoor Corp (DECK); +16.83%
Rocket Companies Inc (RKT); -13.22%
Hecla Mining Comp (HL); -11.51%
Applovin (APP); -12.49%
AngloGold Ashanti Ltd (AU); -10.76%
Roblox Corp (RBLX); -13.03%
Newmont Mining (NEM); -9.52%
Western Digital (WDC); -11.44%

Mid-Cap Stock Movers (Market Cap:$2-$10 billion USD)

Pennymac Fnl Ser (PFSI); -31.1%
Robert Half Intl (RHI); Robert Half shares surge after beating Q4 expectations; +28.42%
Integrated Electr (IESC); IES Holdings shares fall 3% as Q1 earnings miss overshadows revenue beat; -21.01%
Cavco Industries (CVCO); Cavco Industries shares slip 4% as Q3 earnings, revenue fall short of estimates; -17.18%
Mudrick Capital A (HYMC); -15.37%
Ivanhoe Electric Inc (IE); -12.46%
Applied Opt (AAOI); +14.99%
Aura Minerals NAQ (AUGO); -10.94%
MSCI Global Gold Miners Fund (RING); -11.18%
Buenaventura Mining (BVN); -10.32%

Small-Cap Stock Movers (Market Cap:$300 million -$2 billion USD)

TechCreate (TCGL); +145.04%
Red Rock Acquisition (NAMM); -28.85%
Junee (SUPX); SuperX begins production at Japan supply center, secures orders; -22.24%
Lexicon Pharmaceuticals (LXRX); Lexicon Pharmaceuticals launches public offering of common stock; -21.18%
SLVR (SLVR); -15.63%
WeShop Holdings Ltd (WSHP); -18.71%
Vista Gold Corp (VGZ); -16.71%
Solowin Holdings (AXG); -18.86%
AXT Inc (AXTI); +17.7%