5 Stocks to Buy in April According to Jim Cramer

4. Dollar General Corporation (NYSE:DG)

Number of Hedge Fund Holders: 44 

Dollar General Corporation (NYSE: DG) operates as a discount retailer. The veteran investor talked about the stock during the Discussed Stock segment of his show on April 11, giving it a positive mention. He had previously underlined his bull thesis for the stock in a show in late March. He also agreed with the point of view that consumer spending patterns were strong and Dollar General was one of the firms thriving at the low-end of this retail boom as brands with pricing power did well in the high-end segment. 

On March 16, BMO Capital analyst Kelly Bania maintained an Outperform rating on Dollar General Corporation (NYSE:DG) stock and raised the price target to $265 from $250, noting that the fourth quarter earnings of the firm were solid despite gross margin pressures. 

At the end of the fourth quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in Dollar General Corporation (NYSE:DG), compared to 46 in the preceding quarter worth $1.9 billion.

In its Q3 2021 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Dollar General Corporation (NYSE:DG) was one of them. Here is what the fund said:

“Executive Summary

At LRT Capital Management we are continuously searching the market for great investment opportunities. Our favorite finds are companies with moats and growth opportunities that justify a higher price than what the stock is trading for. One of our holdings (approximately 1.5% of our long exposure) is Dollar General Corporation (NYSE:DG), so today, we wanted to tell you a bit about this great company.

Company Overview

Dollar General Corporation (NYSE:DG) is a discount retailer with the largest brick-and-mortar presence in the United States by store count. The company’s largest concentration of stores can be found in the southern, southwestern, midwestern, and eastern parts of the United States.10 Dollar General Corporation (NYSE:DG) was founded in 1939 by J.L. Turner, who originally named the company “J.L. Turner and Son, Wholesale”.  As the name suggests, the company began its life as a wholesaler, but quickly turned to a retailer of general store goods. By the early 1950s, the company had annual sales of $2 million per year,12 which is the equivalent of $22.95 million in 2021 dollars when adjusted for inflation.” (Click here to see full text)