Cramer Names Four Consumer Staples Stocks as Sector Gains 11.4%

Mad Money host Jim Cramer said Friday that he favored four consumer staples stocks as investors looked beyond technology and the sector rose 11.4% in October. The Nasdaq-100 fell nearly 7% for the month, while consumer staples had the second-best sector performance after energy. The S&P 500 Equal Weight Index gained roughly 5% as investors rotated toward defensive areas.

The staples category includes household-name businesses whose products people tend to buy across different market and economic conditions. Cramer said investors should respond to current market conditions while technology issues persist. He said he liked the idea of focusing on consumer staples for a while.

Kimberly-Clark makes Kleenex tissues and Huggies diapers and is among the newest holdings in Cramer's Charitable Trust. Cramer sees its pending merger with Kenvue, which owns Tylenol and Band-Aid, creating efficiencies and a broader consumer-products business. Kimberly-Clark shares gained nearly 11% in October, traded below 15 times earnings and yielded 4.7%. “I think the move is just getting started,” Cramer said.

Procter & Gamble shares rose 11% in October. Separately, the company posted better-than-expected quarterly results last week. Cramer expressed confidence in new CEO Shailesh Jejurikar, though he preferred Kimberly-Clark’s lower valuation and higher dividend yield.

Constellation Brands, which makes Modelo and Pacifico beers, gained 20% in October. Its core beer business gained market share, while its wine and spirits division reported 15% shipment growth last quarter. Cramer said the stock still offered value at roughly 11 times earnings and a dividend yield above 3%. He said it increasingly appeared that the worst was behind the company.

Cramer favored Coca-Cola among major soda makers. Its quarterly report Tuesday showed higher sales volume rather than price increases. He praised the company’s innovation in zero-calorie beverages and protein options through its Fairlife milk business. Coca-Cola shares gained 9% in October.