NEW YORK (TheStreet) -- After Dollar General (DG) - Get Dollar General Corporation Report reported lower-than-expected revenue, TheStreet's Jim Cramer said he's keeping an eye on Dollar Tree's (DLTR) - Get Dollar Tree, Inc. Report earnings report next week.
Dollar Tree is scheduled to release its fiscal second-quarter results on Tuesday before the markets open.
Cramer said Dollar Tree is important because it's merging with Family Dollar (FDO) and because Dollar General saw a "rare miss" this week and its stock keeps getting punished.
"I think that Dollar Tree is a better option than Dollar General, and I think that the merger is brilliant," Cramer said. "If Monday turns out to be a negative session, maybe put some on Dollar Tree because I think they're going to do better than Dollar General."
Analysts polled by Thomson Reuters are expecting Dollar Tree to post earnings of 62 cents a share on revenue of $3.04 billion.
On Thursday, rival Dollar General posted earnings that beat Wall Street estimates but missed on revenue expectations. On Friday, its shares rose 57 cents to $74.84.
Investors will be focused on whether Dollar Tree is taking market share from Dollar General. If it hasn't, it may point to an overall weakness in the dollar-store group.
Dollar Tree outbid Dollar General to buy Family Dollar. Federal regulators approved the merger in July. The combined company will be in a better position to compete with Wal-Mart (WMT) - Get Walmart Inc. Report, which reported a weaker-than-expected profit earlier this month and cut its outlook for the full year.
At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.