CNBC reported that Jim Cramer, host of its “Mad Money” program, urged investors to consider four consumer staples companies as the Nasdaq-100 fell almost 7% in October and defensive shares outperformed.
Energy led sector performance for October, with the consumer staples index next after an 11.4% rise, CNBC reported. The S&P 500 Equal Weight index added roughly 5% for the month. Cramer said unresolved problems in technology made staples worth considering for investors, according to CNBC.
His picks were Coca-Cola, Constellation Brands, Kimberly-Clark and Procter & Gamble.
Constellation Brands shares climbed 20% in October. Its beer division gained market share, while shipments from the wine and spirits unit increased 15% in the latest quarter, CNBC reported. Cramer considered the valuation appealing: the shares traded near 11 times earnings and had a dividend yield above 3%.
Coca-Cola shares rose 9% during the month, and Cramer singled it out among large soda companies. CNBC said the company's quarterly report on Tuesday was driven by higher volume rather than price increases. Cramer also praised its zero-calorie drinks and protein offerings tied to Fairlife's milk business.
Kimberly-Clark shares advanced nearly 11% and traded below 15 times earnings, with a 4.7% dividend yield. Cramer said the planned Kenvue combination could improve efficiency and broaden Kimberly-Clark's consumer-products business, CNBC reported. The company, whose brands include Kleenex and Huggies, is among the newer holdings in the charitable trust run by CNBC's Investing Club.
Procter & Gamble shares gained 11% in October after quarterly results beat expectations last week. Cramer still viewed the company as defensive and expressed confidence in new CEO Shailesh Jejurikar, CNBC reported. The Investing Club sold its long-held P&G position in July, and Cramer said he preferred Kimberly-Clark's lower valuation and higher yield.
