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Cramer Quick Take: Buy Dollar General

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NEW YORK (TheStreet) -- Many analysts had given up on Dollar General when it reported a weaker than expected quarter last quarter, and Jim Cramer was among them.

Cramer told Debra Borchardt at Monday that he was wrong to have made that call and the company has turned itself around in just a single quarter.

With earnings up 9.2% on a healthy rise in revenue, Cramer said the fears of gross margin compression and increased competition just didn't materialize as many, including him, expected.

While the dollar stores typically suffer when the economy recovers, this time higher gasoline prices and increased payroll taxes have kept consumers shopping at the low end as the exact time that stores like Dollar General and Five Below are hitting their stride.

Cramer said he's not a fan of Family Dollar , which he considers the weakest of the group, but for others, like Dollar Tree and Dollar General, the stocks may be a buy on weakness.

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-- Written by Scott Rutt in Washington.

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