10 Stocks Jim Cramer Can’t Stop Talking About

3. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Investors: 64

Jim Cramer discusses The Procter & Gamble Company (NYSE:PG), suggesting it could be a solid investment due to its strong management, attractive dividend, and the potential benefits from lower plastic and fuel costs. However, he cautions that stock market movements are not always driven by logic.

“Maybe you want to buy Procter & Gamble, a longtime favorite. There are lots of logical reasons to like them, but like I told you earlier, logic is rarely what drives the stock market on a day-to-day basis.

Let’s follow through here: Suppose you pick up some Procter & Gamble because you really believe in management, you like the dividend, or you think that plastic and fuel costs are going down, which will boost the company’s gross margin—a huge part of their expenses. So you buy the stock, and then it explodes higher. What’s next? Well, you have to ask yourself, why is it rallying? It’s very easy to tell yourself, “I nailed it! The market’s finally giving Procter & Gamble the credit it deserves.” When you buy a stock and it goes up, that means you were right, right? Why would you second-guess yourself when you’re right?

Well, the answer is simple: Maybe you were just lucky. As I’ve told you before, it’s better to be lucky than good, but either way, you need to be able to tell the difference. So, let’s say you rack up a nice win in Procter & Gamble—you should ask yourself if you were right or if you simply happened to be in the right place at the right time.”

As a major global consumer goods company with well-known brands like Tide, Pampers, and Gillette, The Procter & Gamble Company (NYSE:PG) benefits from a diverse range of products that provide stability, even during challenging economic periods. In its Q4 2023 earnings report, The Procter & Gamble Company (NYSE:PG) demonstrated impressive performance with net sales reaching $20.6 billion, a 5% increase from the previous year. This growth was driven by smart price adjustments and a positive product mix, helping to counteract the impact of inflation and rising costs. The Procter & Gamble Company (NYSE:PG)’s strong brand loyalty and pricing power allow it to pass on higher costs to consumers without significantly reducing demand.

Moreover, The Procter & Gamble Company (NYSE:PG)’s focus on innovation and sustainability further enhances its market position. The Procter & Gamble Company (NYSE:PG) is investing in new, premium, and eco-friendly products that meet the growing consumer demand for sustainable options. Its commitment to environmental goals, including carbon neutrality and waste reduction, strengthens its appeal to environmentally conscious consumers. The Procter & Gamble Company (NYSE:PG)’s strong cash flow enables it to deliver value to shareholders through dividends and share repurchases.