The dollar stores, such as Dollar General (NYSE: DG) and Dollar Tree (NASDAQ: DLTR), have stock prices trading at discount levels in 2025. The discounts were deserved, driven by sluggish retail business and much-needed rationalizations that are now underway. The takeaway for investors in June is that both turnaround stories are gaining traction, but only one is a buy today.
The difference is in the guidance issued for the year. Both will struggle with headwinds, including tariffs and a consumer pullback, but Dollar General is guiding for strength. At the same time, Dollar Tree only reaffirmed its previously stated outlook, raising risks in the process.
