Following the big drop in share price, the valuation for FDO has become more reasonable.

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Competition is intense in the dollar store segment, with Dollar Tree ( DLTR) competing directly with FDO.

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From a technical perspective, FDO is currently trading above both its 50-day and 200-day moving averages, which is bullish.

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One look at a price chart of FDO and you can see a big drop at the start of 2013.

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Other discount retailers that have begun to pullback from recent highs include Family Dollar (FDO) and Dollar Tree (DLTR).

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Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on FDO is its dividend history.

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During that uptrend, shares of FDO have consistently made higher lows and higher highs, which is bullish technical price action.

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Optimism surrounds Family Dollar Stores (FDO) , as it gets ready to report its fourth quarter results on Wednesday, October 3, 2012.

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Family Dollar (NYSE: FDO), Dollar Tree (NASDAQ: DLTR), and other dollar stores are also both doing a great job of attracting lower income customers.

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Family Dollar Stores (FDO) announced that it earned a higher profit due to food sales, though margins remained tight, and earnings were hit by a litigation settlement.

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Estimates for FDO have been declining of late.

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