Global Courant 2023-04-29 05:07:55
Stocks of food and consumer goods are poised to continue running, Jim Cramer said Friday, unless external news pulls the entire market down.
The resilience of snacks and packaged goods stocks will be especially true if debt ceiling talks fail, he added.
In that context, some snack stocks have proven “remarkably inelastic,” Cramer said, and in his mind, these stocks are bribe as people seek solace in familiar brands like Oreos, Colgate and Campbell Soup, in times of uncertainty.
“People are not abandoning these brands despite massive price hikes that have been implemented due to Covid-induced shortages of businesses of all kinds,” said Cramer. “It defied a lot of analysts who thought consumers would decline. They didn’t, which is great for the stock because the analysts were wrong.”
Tobleron maker Mondelez hit a new 52-week high Friday after publishing first-quarter results that beat expectations on the top and bottom lines.
Colgate-Palmolive also rebounded after an earnings report that beat revenue expectations. The company also raised its annual sales forecast and noted solid demand for its pet food products.
Cramer also saw the same promise in it General Millswhich hit a new 52-week high Friday, and Proctor & Gamblewhich last week beat earnings and revenue expectations.
“Even now that these good consumer packaging stocks have run a lot, I don’t think it’s too late,” Cramer said. “I think they can continue to beat and increase numbers for the foreseeable future.”
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