Jim Cramer on Dollar General Corporation (DG): ‘They Seem To Be At The Mercy Of The Big Suppliers’

We recently published an article titled Jim Cramer Discussed These 8 Stocks Recently. In this article, we are going to take a look at where Dollar General Corporation (NYSE:DG) stands against the other stocks Jim Cramer recently discussed.

Jim Cramer, host of Mad Money, provided important guidance to investors last Friday, emphasizing the difficult market conditions ahead. He highlighted the instability caused by President Trump’s unpredictable tariff policies. Cramer warned that this uncertainty could lead to further losses for investors. Looking ahead to the coming week, Cramer pointed out a significant event on Wednesday when the consumer price index (CPI) data will be released. He added:

“I’ll tell you this, If we get a soft CPI and a soft PPI on Thursday, the drumbeat of a rate cut will grow so loud, so loud, it might even overshadow the pained forecast for the White House. With cool inflation meetings, the Fed has no reason not to cut.”

READ ALSO Jim Cramer Commented On These 6 Stocks Recently and Jim Cramer and Analysts Like These 10 Stocks

Cramer turned his attention to Friday when the Michigan consumer sentiment number will be reported, acknowledging that this indicator was not something he paid much attention to during President Biden’s administration.

“I didn’t focus on this number much at all under President Biden because Biden was very predictable so it was easy to make plans. Sure, Wall Street’s hated many of Biden’s policies, especially on interest, but he rarely took us by surprise. Trump surprises us every day.”

Cramer pointed out the importance of consumer sentiment, stating, “We’re a consumer-driven economy, people.” He explained that if optimism prevails, some stocks that might seem risky could actually be good buys.

On the other hand, if pessimism takes hold, many fund managers may sell off stocks tied to the economy, only to see those same stocks rebound once the selling pressure subsides. Cramer also highlighted an important point: while markets can absorb negativity, they cannot handle uncertainty.

“The bottom line: Look, it’s one of the toughest markets I’ve seen in years… So if you wanna buy a stock, make sure not to buy it all once. Buy slowly because the stock you purchase might be down five points by the time you get your report.”

Our Methodology

For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 7. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Is Dollar General Corporation (DG) the Most Oversold S&P 500 Stock in 2024?

A busy shopping aisle filled with discounted items in a retail store.

Dollar General Corporation (NYSE:DG)

Number of Hedge Fund Holders: 53

Mentioning Dollar General Corporation (NYSE:DG), Cramer expressed displeasure with dollar stores and explained:

“Dollar General reports Thursday morning, and this one’s been all over the map lately, near the bottom of it. I think this company and Dollar Tree have become the odd men out as Walmart has hammered prices so low that these guys can’t compete. Dollar stores, they, I don’t know, they seem to be at the mercy of the big suppliers, not Walmart. I am not a buyer of Dollar General or Dollar Tree.”

Dollar General Corporation (NYSE:DG) is a discount retailer offering a wide range of products, including consumables, packaged food, perishables, health and beauty items, pet supplies, seasonal goods, home products, and apparel for all ages. Interestingly enough, in December 2024, Cramer said, “Dollar Tree. I switched. I don’t know if anyone follows me on X. I switched to Dollar General.”

Overall DG ranks 5th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of DG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.