CNBC’s Jim Cramer on Thursday advised investors to consider Procter & Gamble as a potential buyer to weather the turbulent market.
“I told you to stay in the market even in the face of some scary events over the past few weeks, but you need cash and you need conservative stocks,” the Mad Money host said. “This is one of them… Procter and Gamble is the most reliable insurance company.”
“You need something that can handle rising raw material costs by passing it on to the consumer because they have scale and superior brands that can charge higher prices,” he added, praising the company for its pricing ability, but warning that this is not entirely true. infallible against inflation.
Shares of P&G rose 0.37% in Thursday’s trading session, although they are still down 5.64% year-to-date. It’s also down about 6.7% since hitting an intraday all-time high of $165.35 on Jan. 21, meaning the stock is currently at a “good discount,” Cramer said.
P&G said in its fourth-quarter earnings report in January that it will roll out additional price hikes this year after raising some prices earlier during the pandemic, helping expand its healthcare, fabrics and home goods segments.
Cramer pointed to a host of other reasons why P&G deserves investor dollars as Russia’s invasion of Ukraine and soaring inflation continue to ravage the stock market. Cramer highlighted the company’s “insatiable buyback” — P&G is forecasting $9 billion to $10 billion in share buybacks in the fiscal year — and its long-standing trend of higher dividend payouts.
The host also noted the company’s higher-than-expected earnings and revenue performance in the fourth quarter, as well as its geographic location, which placed it in the top insurance stocks rankings.
“We really need to redefine security: it’s not even about your sales being recession resistant, you also have to have your income to be inflation resistant,” he said.
Login Now for CNBC Investing Club to follow Jim Cramer’s every move in the market.
Denial of responsibility