Are Packaged Food Stocks a Safe Bet in a Recession?
In times of economic uncertainty, investors often look for safe havens to protect their portfolios. CNBC’s Jim Cramer recently discussed the potential benefits of adding packaged food stocks to your investment mix, especially if the economy is headed for a slowdown.
Cramer highlighted two companies in the packaged food sector that reported earnings this week: Campbell Soup and J.M. Smucker. While both companies had their strengths and weaknesses, Cramer expressed confidence in the resilience of these stocks during challenging economic times.
Campbell Soup, despite facing some challenges with its recent acquisition of Sovos Brands, managed to deliver solid earnings. Cramer believes that the company’s focus on growing sales without raising prices is a positive sign for its long-term profitability.
On the other hand, J.M. Smucker saw softer-than-expected sales but surprised investors with a significant earnings beat. Cramer noted the success of some of Smucker’s brands, such as Uncrustables sandwiches and pet food, but highlighted the need for improvement in its coffee business.
In addition to Campbell Soup and J.M. Smucker, Cramer recommended looking into other packaged food companies like Tyson Foods, Hormel, General Mills, Conagra, and Kellanova. These companies typically perform well in a slowdown, making them attractive options for investors seeking stability in uncertain times.
Ultimately, Cramer’s analysis suggests that the packaged food sector could be a safe bet for investors looking to weather potential economic challenges. While Campbell Soup may be his top pick among the stocks discussed, each company offers its own value proposition for investors to consider.
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