CNBC’s Jim Cramer advised investors on Thursday to look Procter & Gamble Company As a potential purchase to beat the turbulent market.
“I’ve asked you to hold on to the market even in the face of some scary developments over the past few weeks, but you need some cash and you need some conservative stocks,” he said.mad money‘ said the host. This is one of them… Procter and Gamble are the safest safety stocks. “
“You want something that can handle higher raw material costs by passing them on to the consumer because they have superior scale and brands that can charge higher prices,” he added, praising the company for its pricing power but cautioning that it isn’t quite so. Infallible inflation.
P&G shares are up 0.37% in Thursday’s trading session, although the stock is still down 5.64% since the beginning of the year. It’s also down about 6.7% since it touched an all-time high of $165.35 on Jan. 21, Kramer said, meaning the stock is currently at a “good discount.”
P&G said in its January fourth-quarter earnings call that it will implement more price increases this year after it raised some prices earlier during the pandemic, which Help grow Healthcare, textile and home care sectors.
Cramer pointed to a host of other reasons P&G deserves investors’ money as Russia’s invasion of Ukraine and rising inflation continue to wreak havoc on the stock market. Cramer highlights the company’s “vulgar buyback” – P&G Forecasting $9 billion to $10 billion in stock buybacks for the fiscal year — and its long-term trend of increasing dividend payments.
The host also attributed the company’s better-than-expected fourth-quarter earnings and revenue, as well as its geographic mix, to ranking it as a top safety stock.
“We have to redefine security: not even your sales should be recession-proof, your profits should also be inflation-proof,” he said.
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