Jim Cramer Calls Procter & Gamble “The Best of the Best”

The Procter & Gamble Company (NYSE:PG) is one of the stocks on Jim Cramer’s radar recently. Discussing how the Fed’s rate cutting will make high dividend stocks attractive, Cramer said:

“Which brings me to the best of the best, Procter & Gamble. Yes, this is the best… consumer packaged goods company in the world… Procter is the one to buy. I know that because the company reported a robust quarter just this morning… More important, on the conference call, CFO Andre Schulten, whom I really respect, told a pretty good story of Procter’s resilient performance in a still pretty challenging environment…

Basically, this company’s very well-run, and as usual, their execution was impeccable. One of the things I like the most about Procter is the fact that even when one of their categories is under pressure, the company’s able to set its products apart, taking market share by investing in innovation and advertising at a time when its competitors are typically just hunkering down… If, like me, you believe the consumer packaged goods plays can make a comeback, then Procter & Gamble might be the best way to go, especially with the stock trading at less than 22 times this year’s earnings estimates.

That is near the low end of its five-year valuation range. I’m used to 24, 25 for this one. By the way, again, doesn’t hurt that it’s got a 2.8% yield. Let me give you the bottom line here: In recent weeks, the consumer packaged goods stocks have been showing signs of life. And if you think this group’s done going down, then Procter is the one to buy, given that they just reported a strong quarter in the midst of a fairly tough environment.”

Photo by Yiorgos Ntrahas on Unsplash

The Procter & Gamble Company (NYSE:PG) produces branded consumer goods, including personal care, health care, grooming, home care, and baby and family products.

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Disclosure: None. This article is originally published at Insider Monkey.