Jim Cramer’s Lightning Round: 7 Stocks to Watch

2. Dollar General Corporation (NYSE:DG)

Number of Hedge Fund Holders: 45

When a caller asked about Dollar General Corporation (NYSE:DG), Cramer responded and said:

“Dollar General yields 3%. I like my Dollar General… Here’s the problem, there’s another company, it’s called Walmart and they are crushing it. And I think you gotta buy Walmart over them even though Walmart’s at its high.”

Dollar General (NYSE:DG) is a discount retailer with a significant presence across various regions in the United States. The company’s second-quarter results were weaker than expected and CEO Todd Vasos attributed the softer sales to a core customer base that is feeling financially constrained. This trend continued into the third quarter, where the company reported a 5% increase in sales year-over-year, largely driven by the opening of new stores.

Same-store sales only grew slightly by just over 1%. The retailer also faced a sharp decline in earnings, with operating profit falling by more than 25% and earnings per share dropping by over 29%. Despite these challenges, Vasos noted that the company was able to deliver same-store sales near the top end of its expectations for the quarter. He attributed this to the company’s ongoing efforts to improve store execution and enhance the customer experience, which he referred to as part of its “Back to Basics” strategy.

To further improve the customer experience, Dollar General (NYSE:DG) has focused on several initiatives, including expanding its store network and exploring new product formats. One example of this is the pOpshelf concept, which aims to provide a differentiated shopping experience. The company has also launched Project Elevate, an initiative aimed at revitalizing older stores to improve customer satisfaction and drive sales growth. This project is part of its broader reinvestment strategy, which includes ambitious plans for 2025. These plans feature the opening of 575 new stores across the U.S. and the debut of 15 locations in Mexico.