Famed investor Jim Cramer is sounding the alarm – not of danger, but of opportunity.
In a recent segment, the veteran market commentator urged investors to reconsider beaten-down packaged goods stocks, arguing that the sector may be nearing a cyclical bottom.
Among his top picks: Procter & Gamble (NYSE: PG) and Kimberly-Clark (NASDAQ: KMB) – two consumer giants he believes are undervalued and poised for a rebound.
With inflation cooling and merger activity heating up, Cramer sees a window for investors to capitalize on what he calls “some of the most hated companies in the universe.”
Why Procter & Gamble stock is worth owning heading into 2026
Cramer’s renewed interest in P&G shares stems from the company’s ability to weather inflationary storms through operational scale and product ingenuity.
“They have the size and creativity to make things cheaper,” he said, highlighting the company’s efficiency in managing input costs.
Procter and Gamble’s broad portfolio – from Tide to Gillette – gives it pricing leverage and brand loyalty, which could help sustain margins even as consumer spending remains cautious.
Valuation-wise, P&G stock has lagged behind tech and growth names, but Cramer believes that’s precisely why it’s attractive now.
With inflation showing signs of peaking, input costs may decline, giving Procter and Gamble room to expand profitability.
The company’s consistent dividend and defensive profile further make it appealing in uncertain macro conditions.
Cramer’s call is not just about fundamentals – it’s about timing. He warned that investors might be “missing a bottom” in a group he’s long avoided, suggesting that sentiment has become overly negative.
If inflation cools and consumer staples regain favour, Procter & Gamble stock could be one of the first to benefit.
Why Kimberly-Clark stock is worth owning heading into 2026
Kimberly-Clark’s recent announcement to acquire Kenvue Inc., the consumer health spin-off from Johnson & Johnson, has caught Cramer’s attention.
He praised Kenvue’s brand portfolio, which includes household names like Tylenol and Listerine, despite political noise around drug safety.
The deal signals KMB’s intent to expand its footprint and diversify beyond paper products, a move the former hedge fund manager and Mad Money host sees as strategically sound.
He also pointed to the Trump administration’s relaxed stance on antitrust enforcement, which could make consolidation easier across the sector.
That environment favours companies like Kimberly-Clark, which are looking to scale through acquisitions.
From a valuation perspective, KMB stock has been overlooked amid concerns about cost inflation and sluggish growth. But Cramer argues that those headwinds may be easing.
With inflation potentially peaking and synergies from the Kenvue deal on the horizon, KMB shares could be set for a rerating.
“Too much opportunity to pass up,” he argued – urging investors to reconsider their stance on the sector.
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