Dollar Tree and Dollar General are not the most talked about stocks, and may surprise some with their BUY ratings from Weiss. The two companies are currently on our elite, A or B rated, retailer list, ranking well above of some of the more well-known department stores.

Although their ratings outperform players like Macy’s, J.C. Penney, and Sears, their successful business run is becoming difficult to maintain. For over two years, Dollar General has been, and still is, rated as a BUY stock, even with the recent, August 29, 2016, downgrade from a B+ to a B. Dollar Tree, received an upgrade from a C+ (HOLD) to a B (BUY) on September 2, 2016.

The stock value of both companies are down significantly. They both took a big hit on August 25, after disappointing second quarter earnings reports. Dollar Tree lost 9.9 percent of its value, and Dollar General fell 17.6 percent on that day.

Reports claim the sales went down not because of an increase in price at the dollar stores, but because of an increase in basic everyday products and services, such as housing and healthcare - squeezing the budgets of their core customers. Dollar Tree and Dollar General CEOs blame the top earners--the CEOs of insurance companies and landlords, etc.--for raising prices on their products and services, leaving shoppers with less money to spend at discount retail stores.

Even with disappointing second quarter results and a helped by a drop in stock price, Dollar Tree and Dollar General are viewed as a good buy based on our ratings.

As always, all investments should be monitored at all times. Add them to your Watchlist and we will email you if their ratings change.