Top Dollar Store Stocks for 2025 According to WarrenAI: Dollarama Leads Pack With Strong Financials

Investing.com -- Dollar stores continue to attract investor attention in 2025, with several standout performers offering growth potential despite varying market conditions. According to WarrenAI analysis using Investing Pro metrics, these retailers demonstrate resilience in the current economic environment.

Dollarama (TSX:DOL) emerges as the clear leader among dollar store investments, boasting exceptional financial health with a "GREAT" InvestingPro score of 3.06. The Canadian retailer has delivered impressive returns, with shares up 26.7% over the past year and an outstanding return on equity of 148.9%. While trading at C$182.04, above InvestingPro’s fair value estimate of C$148.15, analysts remain bullish with a C$205.00 price target. Dollarama’s aggressive expansion strategy and projected revenue growth of 9.3% for fiscal year 2025 support its premium valuation, though its 0.3% dividend yield is modest.

1. Dollarama (TSX:DOL): The Canadian retailer dominates with rock-solid fundamentals, double-digit revenue growth (10.3% latest quarter), and strong technical indicators across medium and long-term timeframes. Its premium forward P/E of 39.3x reflects market confidence, though investors should note the current price exceeds InvestingPro’s fair value estimate.

2. Five Below (NASDAQ:FIVE): This growth-focused retailer has delivered a remarkable 62.5% one-year return, with an InvestingPro score of 2.91 ("GOOD"). Trading at $157.60 against a fair value of $168.11 and analyst target of $165.00, Five Below has impressed with 12.4% comparable sales growth in Q2 2025. The company’s appeal to younger shoppers and projected Q3 2026 EPS growth of 616.8% offset concerns about its premium valuation (30.1x forward P/E) and tariff exposure.

3. Dollar General (NYSE:DG): Representing a value opportunity, Dollar General offers the highest dividend yield (3.4%) among peers and the lowest forward PEG ratio (0.84). With an InvestingPro score of 2.50 ("GOOD") and trading at $106.42 versus a $110.97 fair value estimate, the company has seen 19 upward EPS revisions and maintains a consensus "Buy" rating. Recent streamlining efforts following Family Dollar closures have improved its outlook, with shares up 34.6% over the past year.

4. Dollar Tree (NASDAQ:DLTR): Completing the list with an InvestingPro score of 2.52 ("GOOD"), Dollar Tree presents a mixed investment case. Trading at $98.49 against a fair value of $97.39 and analyst target of $108.00, the stock has gained 41.4% over the past year. While fundamentals appear solid with strong recent sales and stable margins, execution risk remains following its Family Dollar divestiture. Short-term technical indicators remain positive, but the wide analyst target range ($70-$135) suggests uncertainty about its future performance.

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