We recently published a list of Jim Cramer Discussed These 9 Stocks Recently. In this article, we are going to take a look at where Dollar Tree, Inc. (NASDAQ:DLTR) stands against other stocks that Jim Cramer discussed.
On Wednesday, Jim Cramer, the host of Mad Money, took a closer look at the state of the market and the stocks that saw gains and losses that day.
“It’s time to praise the winners, the ones that don’t need to wait until April 2nd to find out whether their business will be slammed by tariffs when President Trump announces whose earnings will be cut and who stay the same in a host of industries because tariffs are like taxes and they can cut deep into profits. Today, it all came together even as the averages got hit.”
READ ALSO: Jim Cramer’s Latest Lightning Round: 7 Stocks in Focus and Jim Cramer Recently Put These 10 Stocks Under Spotlight
He noted that Wall Street, for the most part, chose to rally around domestic companies, especially those in the service sector. The trend, according to Cramer, made sense after the president revealed a 25% tariff on all cars made outside the U.S. The news came after the market closed, and while some had anticipated tariff increases, few had expected such a severe measure.
Cramer noted that he even predicted earlier in the day that it might happen, but he did not find many who agreed with him. Now, with a new tariff on 7.38 million cars coming into the U.S., he suggested it would create a significant disruption in the global market, possibly starting that very evening. Despite the uncertainties caused by these new tariffs, Cramer pointed out that there could still be winners in such a situation once the dust settles. He referenced the S&P leaderboard, highlighting stocks that had shown resilience. He added:
“I bet the data center build-out continues to pace, but very few people believe right now in my view. We’re in a curious moment here where any reassurances that the industrial revolution of AI is still on just won’t cut it. Every single stock in the sector is being mauled by the bears.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 26. 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).
A shopper browsing through a discount retailers merchandise aisle filled with a wide variety of items.
Dollar Tree, Inc. (NASDAQ:DLTR)
Number of Hedge Fund Holders: 64
Mentioning Dollar Tree, Inc. (NASDAQ:DLTR), Cramer said:
“There’s also Dollar Tree, that’s the all-American dollar store. They reported very good numbers today, but mercifully dumped Family Dollar. Now that was an ailing business. It never should have been bought in the first place…. Now I know a very significant portion of Dollar Tree’s merchandise comes from China, but on their conference call, they said they’d be able to mitigate a lot of the cost. Now that is great news. No wonder, the stock’s rallied more than 3%.”
Dollar Tree (NASDAQ:DLTR) operates discount retail stores offering a broad range of products, including consumables, household items, seasonal goods, clothing, and electronics. Last Friday, Cramer somewhat extensively commented on the company as he said:
“Wall Street used to love the dollar stores because, unlike most retailers, they kept putting up stores and generating good growth. They went in neighborhoods, other retailers steered clear of, carrying what looked like inexpensive merchandise. Well, that changed during the pandemic. They raised their prices and raised them and raised them in order to pass on the value proposition and it’s never been the same, right? There is no value proposition. These days, the reduced sizes often give you the appearance of value, but people know when they’re getting had. That’s why I’d stay away from Dollar Tree. This thing does not represent the kind of value that we want or that I used to get when we used to go there all the time. By the way, even Walmart’s struggling. So when Dollar Tree reports Wednesday, I’m not thinking it’s gonna be great.”
Overall, DLTR ranks 3rd on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of DLTR 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 time frame. If you are looking for an AI stock that is more promising than DLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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