CNBC’s Jim Kramer on Thursday advised investors to consider Procter & Gamble as a potential purchase to overcome the turbulent market.
“I told you to stick to the market even with some scary events in the last few weeks, but you need a little money and you need conservative stocks,” the Mad Money presenter said. “This is one of them … Procter and Gamble is the safest of safe stocks.”
“You want something that can handle rising raw costs by passing it on to consumers because they have scale and great brands that may require higher prices,” he added, praising the company for its price power but warned that it is not entirely infallible about inflation.
Shares of P&G rose 0.37% in Thursday’s trading session, although shares are still down 5.64% since the beginning of the year. It also fell about 6.7 percent after hitting the all-time high of $ 165.35 on Jan. 21, meaning the stock is currently at a “nice discount,” Kramer said.
P&G said in its fourth-quarter earnings announcement in January that it would apply more price increases this year after raising some prices earlier in the pandemic, which helped expand healthcare, tissue and home care segments.
Kramer cited a number of other reasons why P&G deserves investing dollars as Russia’s invasion of Ukraine and rising inflation continue to devastate the stock market. Kramer highlighted the company’s “insatiable buyout” – P&G forecasts $ 9 billion to $ 10 billion in share buybacks for the fiscal year – and its long-standing trend to increase dividend payments.
The host also credited the company’s better-than-expected fourth-quarter earnings and revenue, as well as its geographic mix, for ranking it as the safest stock.
“We need to redefine safety: it’s not even about your sales being resilient to recession, you also need to have your profits to be resilient to inflation,” he said.
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