Jim Cramer highlights four consumer staples stocks as tech struggles
Jim Cramer named Kimberly-Clark, P&G, Constellation Brands and Coca-Cola as temporary diversification options amid October’s tech selloff.
By Theo Nakamura · Staff Writer
· 3 min read
Jim Cramer said Oct. 30 that investors looking beyond a weak artificial-intelligence trade could consider consumer staples, naming Kimberly-Clark, Procter & Gamble, Constellation Brands and Coca-Cola. For individual investors, the Jim Cramer consumer staples stocks list was a short-term diversification view, not a call to abandon technology altogether, according to CNBC.
Cramer’s comments followed a sharp split in October market performance. CNBC reported that the Nasdaq-100, an index of large technology companies, fell nearly 7% during the month. The S&P 500 Equal Weight Index rose about 5%, while the consumer-staples index gained 11.4%, second among sectors only to energy.
Consumer staples are companies that sell everyday products people often continue buying across different economic conditions, such as household goods, drinks and food. Cramer said other groups could offer better opportunities while the market worked through tech-sector concerns, CNBC reported.
Which consumer staples stocks did Jim Cramer name?
- Kimberly-Clark: Cramer pointed to the company’s pending merger with Kenvue, owner of brands including Tylenol and Band-Aid. He said he expected the transaction to create efficiencies. Kimberly-Clark, which makes Kleenex and Huggies, was also a newer holding in Cramer’s Charitable Trust, according to CNBC.
- Procter & Gamble: Cramer said P&G remained an appealing defensive holding after quarterly results that beat expectations, and he expressed confidence in new CEO Shailesh Jejurikar. CNBC said the Investing Club had exited its P&G position in July.
- Constellation Brands: Cramer cited market-share gains in the company’s beer business and 15% shipment growth in its smaller wine-and-spirits division in the previous quarter. The company sells Modelo and Pacifico beer.
- Coca-Cola: Cramer preferred Coca-Cola among major soda makers after a quarterly report he said was helped by higher sales volume rather than price increases. He also highlighted the company’s zero-calorie drinks and Fairlife protein offerings.
The valuations and yields cited in CNBC’s report were snapshots from late October, rather than current figures. Kimberly-Clark had risen nearly 11% in October and traded below 15 times earnings with a 4.7% dividend yield. P&G was up 11%; Constellation Brands had climbed 20%, traded near 11 times earnings and yielded more than 3%; and Coca-Cola had gained 9%.
A price-to-earnings ratio compares a share price with earnings per share. It can help frame valuation, but it does not by itself determine whether a stock is attractive.
Cramer’s staples comments did not amount to a blanket rejection of technology. In a separate CNBC report published Oct. 28, he said several large tech companies, including Alphabet, Amazon, Apple, Meta, Microsoft and Nvidia, were comparatively better positioned to withstand market turbulence. His later view focused on diversification while tech-sector uncertainty persisted.
Cramer’s opinions and the disclosed Trust affiliation are useful context, but they are not individualized investment advice.
This story draws on original reporting from CNBC.
