Jim Cramer Latest Portfolio: 10 Stocks to Watch in September

4. Kroger Co (NYSE:KR)

Number of Hedge Fund Investors: 46

Jim Cramer in a recent program praised Kroger Co (NYSE:KR) latest results, saying many thought the company would be “distracted” because of its efforts to buy Albertsons and won’t be able to focus on its core business. However, the company proved the opposite is true. Cramer said CEO Rodney McMullen’s “magic” kept food costs down while tackling the tough labor force and commodity environment.

“Kroger Co (NYSE:KR) confounded the critics by developing a superior loyalty program, regionalizing their storage and creating the best store brand private label products out there.”

Cramer also highlighted a comment from the CEO made during the latest earnings call:

“Budget-conscious customers are buying more at the beginning of the month to stock up on essential items and groceries.

And then as the month progresses, they are more cautious with their spending. In response, we are supporting our customers by keeping prices low through promotions, including loyalty discounts, personalized offers and fuel rewards. We are also expanding our multi-tiered portfolio of Our Brands products, which provides customers exceptional alternatives to national brands competing on quality, while at a noticeable lower price point. Our long term model demonstrates that by consistently keeping prices low, we increase customer loyalty and grow share of wallet. While the food-at-home industry remains competitive, our model drives efficiencies that allow us to sustainably invest in value and maintain competitive price spreads with key competitors.

Read the full earnings call transcript here.