"I like both Dollar Tree (DLTR) - Get Report and Dollar General (DG) - Get Report ," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said Wednesday from the floor of the New York Stock Exchange.
Dollar Tree and Dollar General are scheduled to report earnings before the open Thursday.
Dollar General is "steady as she goes," but Cramer said he prefers Dollar Tree, which he likes for its seasonal promotions -- along with its tempting candy aisle. The company's recent acquisition of Family Dollar should start to pay dividends, too.
However, investors should keep one thing in mind. Dollar Tree tends to react poorly after the initial earnings results are reported. Investors shouldn't jump to conclusions on this move, as it tends to be a knee-jerk reaction, he explained.
Analysts are looking for Dollar General to earn 95 cents per share on revenue of $5.28 billion, while Dollar Tree analysts expect the company to earn 81 cents per share on $5.1 billion in revenue.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.