We recently published a list of Jim Cramer Looked At These 23 Stocks Recently. In this article, we are going to take a look at where Dollar General Corporation (NYSE:DG) stands against other stocks that Jim Cramer looked at recently.
Jim Cramer, the host of Mad Money, offered an optimistic perspective on the market on Thursday as he challenged the prevailing pessimism among some on Wall Street. He highlighted the diverse range of sectors showing gains.
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Cramer observed that when investors are focused on long-standing winners, like tech stocks, it can be easy to miss when their dominance starts to wane. Cramer expressed his hesitation to part ways with tech given its long-term success but he pointed out something surprising as he reviewed the top-performing sectors.
“But when I scroll through the winning sectors for the year, I am struck by how they represent a wide array of groupings that aren’t tethered to any particular economic worldview.”
Cramer noted that neither the outlook of a recession nor predictions of a major slowdown could explain the growth seen in sectors beyond tech and communication services. He discussed that this year’s leaders are not only unexpected but in some cases, they seem counterintuitive. He described them as “broad,” in the sense that they span a wide range of industries, each responding to different economic conditions. He highlighted that these sectors that are performing well now have been largely overlooked for years, as tech has long dominated the spotlight.
Cramer said that for a long time, market participants had hoped for a rally that would extend beyond the tech sector, and now it seems to be happening. However, he remarked, “except you can’t call it a rally anymore.” He went on to say that a day like Thursday, in his view, was a sign of a healthy market despite the constant narrative of trouble in the economy.
“But the bottom line: It’s tricky to see such a broad mixture of stocks winning here, from ones that can run in a recession to ones that can rally hard in a robust economy. What it tells me is that the market may be far healthier than we think, and this backdrop simply isn’t as bad as many would have you believe.”
Our Methodology
For this article, we compiled a list of 23 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 27. 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).
Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 53
Talking about recession-resistant stocks, here’s what Cramer had to say about Dollar General Corporation (NYSE:DG):
“Dollar General is number three and it’s a stock that historically has done well on a slowdown.”
Dollar General (NYSE:DG) is a discount retailer offering a broad range of products, including everyday essentials, packaged foods, perishables, health and beauty items, pet supplies, seasonal goods, home products, and clothing for all ages. On March 13, Cramer discussed:
“Flip that over, Dollar Gen, there’s really nothing really great and people decide well that’s a good one. But that’s because they’re finally closing some stores that are underperforming… I’m always trying to figure out what’s better than feared versus what’s better. This morning Dollar General reported better than feared numbers. They’re still opening stores like mad. They’re going to close some underperformers. But the reason why I liked this one is because we all know that these stocks have been in a real slide. And a lot of them have been in a real slide because people say Walmart’s been taking it to them. I think this is, well wait a second, maybe that thesis is, is not as pertinent. Maybe wherever they have stores, where there’s no Walmart competition they’re doing a little better. At my Dollar General I go in, and there’s some real bargains and then there’s things that are so much more than a dollar. I get confused. But it’s where no other store is. So it’s, you know it’s kind of like it’s got the market to itself. They opened well, but they choose real estate well they do well. And I felt that they’re putting up willy, nilly. And I think they’re doing much more targeted. I like it.”
Overall, DG ranks 10th on our list of stocks that Jim Cramer looked at recently. 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.
