Jim Cramer Warns of a 36% Market Drop & Reviews These 9 Key Stocks

3. Dollar Tree Inc. (NASDAQ:DLTR)

Number of Hedge Fund holders: 64

Dollar Tree Inc. (NASDAQ:DLTR) operates discount variety stores across North America. Despite a Citi upgrade, Cramer dismissed the bullish argument that the company could raise prices due to tariffs, noting it lacks the supply chain muscle of larger retailers, such as Walmart. Here’s his analysis:

“One of the critical things that’s happening today, that Citi upgrades Dollar Tree. I want to point this out that one of the reasons why people feel Dollar Tree is interesting is the tariffs have given them the right to be able to go to $1.25, $1.75. I think this is fatuous reasoning. The reason I say that is because you have an outfit like Walmart, and they have the ability to be able to go to China and negotiate. Dollar Tree does not have that ability. Would you still go to Dollar Tree if Walmart’s appreciation would be cheaper? No. So I’m not buying that wrap.”