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Cramer: This Stock Is ‘Too Cheap to Ignore’

"At these levels, I think Dollar General is too cheap to ignore," Jim Cramer said Monday. "I think it's time to buy Dollar General hand-over-fist."

After all, the "Mad Money" host noted Dollar General's stock has fallen roughly 14 percent from its highs. The stock fell, in part, on news that competitor Dollar Tree cut its same-store sales guidance for the third-quarter due to higher gas prices and cautious consumers, among other reasons. Dollar Tree's grim forecast brought down shares of dollar store operators across the board, but Cramer thinks Dollar Tree's problems are Dollar Tree's problems alone.

(Read More: Bulls Hunt for Bargains in Dollar Tree.)

"Dollar Tree blamed [high gas prices] for their weaker same-store sales. This makes no sense to me," Cramer complained. "Because when gas prices go up, consumers are more likely to trade down and shop at a dollar store and that offsets the fact that they have less disposable income."

In addition, Cramer noted dollar stores typically get a lot of business from walk-in traffic, meaning those customers aren't driving anyway.

To Cramer, Dollar General is in a much better shape. He actually thinks it is "by far the best of the dollar store plays — it dominates the industry, it's growing its store count, adding new concepts and aggressively paying down debt."

(Related: Goldman Sachs upgrades Dollar Tree.)

Perhaps more importantly to Cramer, though, Dollar General's stock is currently a "steal down here." DG is currently trading at just 14.2 times next year's earnings estimates despite its 18 percent long-term growth rate, which he considered a huge discount to its historical average multiple of 17.9 times earnings.

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