In a Slower Economy, Packaged Food Stocks Expected to Perform Strongly

CNBC’s Jim Cramer highlighted packaged food stocks that could be beneficial to add to portfolios, particularly as the economy shows signs of slowing down. He mentioned that while they were not perfect, he was encouraged by the recent earnings reports from Campbell Soup and J.M. Smucker. Cramer emphasized the importance of owning recession-proof stocks that consistently perform well regardless of economic conditions, such as companies in the packaged food industry.

Cramer expressed a preference for Campbell Soup over J.M. Smucker, noting that both companies had compelling stories in their recent earnings reports. Campbell Soup showed strong earnings but weaker guidance due to its acquisition of Sovos Brands, which Cramer believes will be beneficial in the long run. He also praised Campbell Soup for growing sales without increasing prices. On the other hand, J.M. Smucker had softer sales but managed to exceed earnings expectations. Cramer highlighted areas for improvement in J.M. Smucker’s coffee business.

In addition to Campbell Soup and J.M. Smucker, Cramer suggested considering other packaged food companies like Tyson Foods, Hormel, General Mills, Conagra, and Kellanova. He noted that the packaged food industry tends to perform well during economic slowdowns, making these stocks potentially attractive investments. Cramer indicated a positive outlook for the packaged food sector after the recent earnings reports from Campbell Soup and J.M. Smucker, stating a preference for Campbell Soup but acknowledging the value proposition of J.M. Smucker as well.