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TSE:DOL

Dollarama Inc. (DOL.TO)

186.89
-0.96 (0.51%)
as of Jun 19, 2026, 8:00:01 pm Market Open.
366 watching
0
BUY ON WEAKNESS
He trimmed his holding. It's a safe-haven retailer during the pandemic. It's fully priced now. Wait for the low-$40s to enter.
HOLD
This segment will likely come out of this doing well. They will benefit from increased consumer thriftiness. He has others out there he prefers in this market segment, where growth opportunities are better.
BUY ON WEAKNESS
The stock has been rallying into earnings. They have a unique position in Canada as a value retailer and they have growth levers in Canada along with Latin America. They have an opportunity as other retailers may drop out. It trades at 27 times earnings -- a little rich. A long term winner. He owns it, but would add at lower levels.
PAST TOP PICK
(A Top Pick Jun 13/19, Up 13%) People are buying more on each trip. DOL-T is an essential service. Results yesterday were better than expected, even if down year over year. Same-store growth was positive. Earnings were under pressure because of cost pressures to deal with COVID-19. They are a strong retailer and the biggest dollar store in the country. This stock will be a beauty over the long term.
TOP PICK
It is a very long term growth story. They have well telegraphed plans to increase to 1700 stores. They are experts at procurement and merchandising. They create a compelling value proposition for shoppers. They may benefit from a lot of retailers not surviving the pandemic. (Analysts’ price target is $50.31)
BUY

DOL vs Dollar Tree vs. Dollar General He likes Dollar General for its location and execution. Doesn't like Dollar Tree because their locations are urban centres where there's too much competition. He prefers Dollarama over Dollar General, but likes DOL, but many DOL stores are inside malls, which is a problem now (malls are closed). He prefers DOL to Dollar Tree because they execute better; and Dollar General over Dollar Tree.

COMMENT
It was a darling 2-3 years ago. There is a limit to how much money they can make on their low margin business. He would need to see a 5% dividend yield before feeling comfortable to own given the competitiveness of the retail space.
PAST TOP PICK
(A Top Pick May 29/19, Up 5%) He still likes it. It has done a great job of defending market share in Canada. If you think the economy is not going to come out of this to the same extent it was a year ago, then you will see a cascading of retail dollars down to DOL-T.
DON'T BUY
While there is a component of online retailing that is taking a share from them right now, this is an essential service. The type of consumer that shows up wants a quick in and out and knows what they want. It could do well in this environment but he is not buying any consumer names at this point.
HOLD
They have low price points and do well during recessions. She owns a different store based in the US instead. She would hold it if you own it, but at 21 times earnings, she would not be buying yet.
HOLD

Great company, executing well. Concerned, as it's below 200-day moving average. Underperforming Dollar General, because US consumer is stronger than the Canadian, plus DG is in optimal rural locations.

BUY
He likes DOL. When compared to other similar stores, they are in the top tier of the key metrics. A small price increase goes directly to the profitability as prices are generally pretty low. He thinks this makes for good growth opportunities long term. At 19 times earnings it is not outside of their historical ranges. (Analysts’ price target is $48.00)
COMMENT
His firm follows it. He would look at it to see the overall health of retail. It's the go-to for when the economy goes bad.
DON'T BUY
They got their first bear from analysts. He would be interested in buying this for a long term hold. It got ahead of itself and then pulled back. The overall trend is down so it is not something he would be interested in. Set a stop point. The next layer of support is below this.
PAST TOP PICK
(A Top Pick Feb 25/19, Up 15%) It pulled back recently. He's hanging on. It's a quasi-recession-proof stock.
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