The Procter & Gamble Company is among the stocks Jim Cramer discussed for this week's market strategy. Cramer detailed why the stock remains in his Charitable Trust portfolio.
"Procter & Gamble reports on Thursday," Cramer said. "I don't expect any fireworks or anything really good out of the company that's had to pre-announce a number of negative factors ahead of the quarter. So why the heck do we own Procter for the Charitable Trust? Because it has a new CEO, because everyone knows the brands are tremendous. Most of all, because the stock's down so much that I know it can bounce, especially with that near 3% yield."
Procter & Gamble sells branded consumer goods through names like Tide, Pampers, Gillette, Crest, Olay, and Febreze. Cramer mentioned the company during a recent episode.
"So let's talk about Procter & Gamble and then let's talk about a pharma company, J&J," Cramer stated. "Now, here are two companies that have products that you buy, no matter what. You need toothpaste and medicine regardless of how the economy's doing... Procter's a different kettle of fish. They have already told us that business isn't that hot, and they have lots of problems, so be prepared for, it's the worst because they've told you the worst is coming. It might exceed that. Yet its stock went up big today. That's because even if it's bad, Procter & Gamble's still going to do fine versus the cyclical stocks, which are going to get crushed. When you see this one rally on bad numbers, it's a real tell that things could go south. We bought Procter for the Charitable Trust, totally just as a hedge, hoping that we don't get a weaker economy. On a day like today, it's coming in very handy. Maybe you should have a hedge too."