Family Dollar is getting pricey

The discount retailer's stock rises on better-than-expected earnings.

By Motley Fool Jul 10, 2013 2:42PM

Shares of Family Dollar (FDO) are rising today after solid third-quarter earnings.  Sales were up 9% and comps rose early 3%. But despite the good numbers, Motley Fool analyst Jason Moser is reluctant to consider the stock. 


For one thing, retail giants like Wal-Mart (WMT) and Amazon (AMZN) pose an ever-present threat. Moreover, Family Dollar is already facing direct competition from other discount retailers like Big Lots (BIG) and Dollar Tree (DLTR).  For those reasons and more, Moser recommends investors avoid the stock.


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