Click to Enlarge Discount retailer Family Dollar (NYSE:FDO) knocked the cover off of the ball in 2009 and 2010 as shoppers searched for bargain basement prices. Now, with signs of an economic recovery taking root, the market has all but forgotten about the discounters.
History tells us that the lack of attention allows for an opportunity in these companies as they continue their strong trend.
Currently, FDO shares are trading 20% higher for the year, though you wouldn’t know it from the current buy recommendations. As of now, there are only 48% buys on FDO, which has the potential to change as we move into 2013.
With investors and analysts prepping for another economic slowdown in 2013, companies like FDO are likely to attract attention as market leaders again. Look for analysts to stop straddling the fence and start upgrading FDO and similar stocks.