Jim Cramer Discussed These 11 Stocks Recently

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

Number of Hedge Fund Holders: 68

Cramer explained that The Procter & Gamble Company (NYSE:PG) stock often rises irrespective of its fundamentals and noted that it is a recession stock. Cramer pointed out that there are several well-managed consumer packaged goods (CPG) companies, and Procter & Gamble is a long-time favorite among them.

He mentioned that there are many logical reasons to like the company, such as its strong management, attractive dividend, and the potential for lower plastic and fuel costs to improve its gross margin, a significant part of its expenses. However, Cramer emphasized that while these reasons make sense, logic does not always drive the stock market on a daily basis. He added:

“So you buy the stock and then it explodes higher. What’s next? Well, you have to ask yourself why is it rallying… Let’s say you rack up a nice win in Procter, you should ask yourself if you were right or if you simply happened to be in the right place at the right time. What do I mean by right place or time? Rotation, rotation, rotation.

There are times when the consumer packaged goods stocks roar higher for reasons that have nothing to do with the underlying companies. Procter, like all consumer packaged goods plays, is a recession stock because its earnings tend to hold up during a slowing economy, its stock roars when we get lousy economic data.”

Procter & Gamble (NYSE:PG) provides a diverse range of consumer goods, including products for beauty, grooming, healthcare, fabric, and home care, as well as baby, feminine, and family care, all under several well-established brands.