The dollar stores have been one of the best moves an investor can make this era, Cramer said. Dollar General was one of those stories, until the company projected profits will fall short of Wall Street’s expectations this year, he said.
The discount retailer announced it needs to spend more money on its stores to attract customers, an investment in “some important strategic initiatives that nobody I know saw coming,” Cramer said.
The stock fell 7.5 percent in Thursday’s session before closing down less than 2 percent. The stock is worth buying at its levels if you accept that it may be downgraded by analysts on Friday, he added.
“Yesterday Dollar General was a market darling. Today it’s a market goat,” Cramer said. “If you want to own individual stocks, you need to be prepared for this kind of move, because sooner or later it will happen to you—it is inevitable.”