Jim Cramer’s Game Plan: 9 Stocks in Focus

4. Dollar Tree, Inc. (NASDAQ:DLTR)

Number of Hedge Fund Holders: 64

Discussing that dollar stores used to be loved, Cramer mentioned that companies like Dollar Tree, Inc. (NASDAQ:DLTR) do not offer value propositions anymore.

“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.”

Dollar Tree (NASDAQ:DLTR) runs discount retail stores that provide a wide variety of consumables, household goods, seasonal items, clothing, and electronics under its Dollar Tree and Family Dollar brands.