Jim Cramer favorite Dollar General ( DG) also appears to be poised to have a very profitable holiday season.

In a recent press release this smart purveyor of just about everything shoppers are looking for (and has 10,203 stores in 40 states) referred to itself as a "one-stop-shop for the holidays."

"Getting a jump-start on the holidays is important to our customers, so we've filled our stores with seasonal items in October to help them prepare for decorating, giving and celebrating," said Todd Vasos, Dollar General's executive vice president, division president and chief merchandising officer.

"Customers can trust Dollar General for great value and selection now and throughout the holiday season," is a quote straight out of their latest press release.

As of Aug. 3, (their most recent earnings quarter), DG had amassed total cash of $137 million and had an enormous levered free cash flow (trailing 12 months) of more than $401 million. This is the result of great management and prescient building of the kind of stores that are hard to beat when it comes to variety and value.

Many investors wonder what they'll do with all that levered free cash. Perhaps they'll offer a dividend, or if they really want to goose the stock's price, they might include a special bonus payout for shareholders?

That's why it was no surprise that they grew their quarterly earnings last quarter by 47% year-over-year! This chart does an impressive job of showing why their share price has been on a tear for almost three years in a row.

DG Chart DG data by YCharts

If Dollar General has another blow-out quarter it wouldn't surprise this analyst to see their share price hit new 52-week highs before the end of 2012. Their forward price-to-earnings ratio is 15.43 and their current P/E is just above 19.

With the stock market looking like it's in a consolidation phase, investors may be wise to wait and see if DG shares correct below the $50 line, and maybe even test their 200-day moving average of around $48. Then load up your "shopping cart" and see if there isn't a 20% upside pop when this massive bull market resumes its Fed-juiced rally.

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