NEW YORK (TheStreet) -- Low gas prices have helped sales to accelerate at Dollar General (DG - Get Report) , TheStreet's Jim Cramer said during CNBC's "Stop Trading" segment. Having a analyst resume coverage on the stock helps, too.
Cramer, the co-manager of the Action Alerts PLUS portfolio, said J.P. Morgan resumed its coverage on the AAP holding with an overweight rating and $85 price target. Dollar General hit a new 52-week high on Monday but now trades at $71.50.
Looking at other stocks on the move, Cramer noted Valeant Pharmaceuticals (VRX) shares are up over 13% Monday thanks to its announcement of buying Salix Pharmaceuticals (SLXP) for $10.1 billion in cash.
If Valeant can generate $11 in earnings per share and is valued at 20 times earnings, that puts the stock at $220, Cramer explained. If the company does indeed earn that much, the stock is cheap even after Monday's rally, he reasoned.
-- Written by Bret Kenwell