Shares of Family Dollar (NYSE:FDO) rose today after solid third-quarter earnings. Sales were up 9% and comps rose early 3%. Despite the good numbers, Motley Fool analyst Jason Moser is reluctant to consider the stock. For one thing, retail giants such as Wal-Mart (NYSE:WMT) and Amazon.com (NASDAQ:AMZN) pose an ever-present threat. Moreover, Family Dollar is already facing direct competition from other discount retailers suhc as Big Lots (NYSE:BIG) and Dollar Tree (NASDAQ:DLTR). For those reasons and more, Jason recommends investors avoid the stock.
Chris Hill and Jason Moser own shares of Amazon.com. The Motley Fool recommends Amazon.com and owns shares of Amazon.com and Big Lots. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.