Buy Dollar General for Consistency and Dollar Tree for High-Risk, High-Reward, Jim Cramer Says

"While Dollar General's pitching this as a move to help their customers, who often struggle to make ends meet, especially if they're on a fixed income, it has the added advantage of luring away disaffected Dollar Tree customers who don't like paying an extra quarter," Cramer said.in line with forecasts and a miss on revenue earlier this month. Dollar General also forecast better-than-expected full-year sales and raised its dividend by 31%.Dollar Tree stock fell 0.

The host said that Dollar Tree stock has gained overall in recent months and highlighted the company's executive board changes at Dollar Tree as a reason. The retailer named Richard Dreiling, a former Dollar General executive, as Dollar Tree'sPiper Sandler and Loop Capital Market upgraded their positions on Dollar Tree after the move."Activist pressure can work wonders, especially if it's a smart activist," Cramer said.

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