Dollar General Corporation

Dollar General is the largest US discount retailer by store count — small-format stores in rural and small-town markets that serve lower-income customers. The stock is off 9% YTD after multi-year underperformance, and Jim Cramer's framing as a 'hedge fund favorite as gas prices rise' captures the setup.

• Revenue grew 3% YoY at $10.4B last quarter — modest but reaccelerating from prior-year comp declines; the trajectory suggests the operational reset is starting to work.
• Trades at 15x TTM earnings, 0.53x sales, and a 13% free cash flow yield — deep-value multiples that only make sense if you believe the comp recovery is real, which is exactly the setup Cramer is calling out.
• Free cash flow yield of 13% covers the dividend comfortably and gives management room to reinvest in the store base — the operational lever the turnaround needs.
• Zero insider transactions in the last 30 days — clean absence of distributing signal at 41st percentile of 52-week range, and the $1-every-day back-to-school promotions signal continued value-focus positioning.
• Position vs 50-day MA +9% with the tape stabilizing after the earlier drawdown — the setup is a genuine turnaround-in-progress, not just a value trap.

August 27 Q2 earnings is where the comp recovery either extends or stalls: same-store sales at or above +2% plus a raised FY26 comp guide is what confirms the turnaround; another comp reset or margin compression is where the -9% YTD extends and the value framing weakens. Real deep-value setup in a defensive segment — the hedge-fund-favorite framing means positioning is already leaning long, so a beat needs to be substantial.