Jim Cramer highlights four consumer staples stocks as tech trade weakens

Jim Cramer consumer staples stocks were in focus on Oct. 30 after the CNBC host said investors seeking to diversify from a weakening artificial-intelligence and technology trade could consider the defensive sector. CNBC reported that the Nasdaq-100 ended October down almost 7%, while the consumer-staples index climbed 11.4%, its second-best sector performance behind energy.

The S&P 500 Equal Weight index gained about 5% over the month, CNBC reported. Unlike the standard market-capitalisation-weighted S&P 500, the equal-weight version assigns the same weight to every constituent, reducing the influence of the largest companies.

Cramer identified Kimberly-Clark, Procter & Gamble, Constellation Brands and Coca-Cola. His comments reflected a preference for staples while technology-sector issues are resolved, CNBC said, rather than an independently verified assessment of the companies.

Which consumer staples stocks did Jim Cramer highlight?

• Kimberly-Clark: Cramer cited the company’s pending merger with Kenvue, saying he expected the combination to create efficiencies. CNBC reported that Kimberly-Clark, which makes Kleenex and Huggies, rose nearly 11% in October, traded below 15 times earnings and offered a 4.7% dividend yield. It was also a newer holding in Cramer’s Charitable Trust, the portfolio run by CNBC’s Investing Club.
• Procter & Gamble: Cramer said the household-products group remained an attractive defensive holding after what CNBC described as better-than-expected quarterly results. He also expressed confidence in Shailesh Jejurikar, the company’s new chief executive. P&G shares gained 11% in October, according to CNBC, though Cramer said he preferred Kimberly-Clark because of its lower valuation and higher yield. CNBC’s Investing Club had exited its P&G position in July.
• Constellation Brands: Cramer pointed to signs of improvement at the owner of Modelo and Pacifico. CNBC reported that its beer business had gained market share and that wine-and-spirits shipments grew 15% in the latest quarter. The shares rose 20% in October and traded at about 11 times earnings, with a dividend yield above 3%, CNBC said.
• Coca-Cola: Cramer selected Coca-Cola as his preferred major soft-drinks company. CNBC said its latest quarterly performance was driven by higher sales volumes rather than price increases. Cramer also highlighted the company’s zero-calorie beverage offerings and protein products under the Fairlife brand. Coca-Cola shares gained 9% in October, CNBC reported.

Did Cramer’s staples call mean he had turned against technology?

No broad rejection of technology was indicated in CNBC’s reporting. Two days earlier, Cramer had described Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, SpaceX, Anthropic and OpenAI as unusually resilient companies, while adding that even those groups remained exposed to wider market pressures.

The October figures describe a single month of market performance and do not establish future returns. Cramer’s valuations, yield comparisons and merger rationale were presented as his views and CNBC’s reported figures at the time.

This story draws on original reporting from CNBC.