The Procter & Gamble Company (PG), Wal-Mart Stores, Inc. (WMT): Time for Investors to Break Out the Champagne? Not So Fast.

Target reported a slight increase in same-store sales during the fourth quarter. To help fend off U.S. economic headwinds, the company may look for future growth from international stores. Target is expanding into Canada, a country whose economy is growing at a steady pace.

Meanwhile, in late January, household goods giant The Procter & Gamble Company (NYSE:PG) reported much better than expected quarterly results that were led by new products like Tide Pods, strong sales in emerging markets, and ongoing companywide cost-savings programs.

Belt-tightening
However, the burdens on the American consumer may prompt shoppers to seek cheaper versions of necessary everyday items. As a result, consumers may flock to deep-discount retailers like they did during the most recent recession.

If that’s the case, Dollar Tree, Inc. (NASDAQ:DLTR), which sells every item in its stores for $1 or less, and Family Dollar Stores, Inc. (NYSE:FDO) may benefit from the trend. Lower-end retailer Dollar Tree reported a 2.4% increase in same-store sales and a 26.3% increase in diluted earnings per share for the fourth quarter. Dollar Tree’s stock is up roughly 13% since that announcement. Meanwhile, Family Dollar Stores will report earnings on April 10.

The article Time for Investors to Break Out the Champagne? Not So Fast. originally appeared on Fool.com.

Fool contributor Nicole Seghetti owns shares of Wal-Mart Stores, Procter & Gamble, and Target. Follow her on Twitter @NicoleSeghetti. The Motley Fool recommends Procter & Gamble.

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