Jim Cramer’s 10 Stock Picks You Need to Know

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

Number of Hedge Fund Investors: 64

Jim Cramer has shared his experiences with The Procter & Gamble Company (NYSE:PG), which is part of the travel trust portfolio. He admits that investing in The Procter & Gamble Company (NYSE:PG) has been challenging, noting that the stock frequently fluctuates.

“We own Procter & Gamble for the travel trust. It’s been a real pain in the butt, frankly. It creeps up the ladder of the rotation and then slides down the chute of earnings over and over again. It fell apart after the last quarter, plummeting from $169 to $160 in a couple of sessions. The issue was China, which took everyone by surprise. But ever since we got clarity on the Fed’s next move, Procter has been rallying like crazy, and today it jumped to a new high of $175. Did Procter’s China problem get cured? I sure hope so, or the moment we get some strong data, perhaps from this Friday’s employment report, the chute will be back, the ladder will be pulled, and Procter’s stock will be headed lower again.”

For fiscal 2024, The Procter & Gamble Company (NYSE:PG) saw a 4% rise in organic sales, marking six years of continuous growth. This is supported by its diverse range of household and personal care products, which help the company stay resilient in tough economic times. Even though The Procter & Gamble Company (NYSE:PG) recently missed quarterly revenue targets, it surpassed earnings expectations with net sales of $84 billion, showing its efficiency and ability to handle inflation through effective pricing.

The Procter & Gamble Company (NYSE:PG)’s forward price-to-earnings (P/E) ratio of 24.7, while higher than the sector average, indicates that investors are confident in its future earnings potential. The Procter & Gamble Company (NYSE:PG)’s strong free cash flow of $13.6 billion supports a 2.4% dividend yield, which is attractive to investors looking for steady income. With its strategic management and operational strengths, The Procter & Gamble Company (NYSE:PG) is well-positioned to continue providing value to shareholders, making it a reliable choice in the consumer staples sector.