Beyond tech: analyst recommends these consumer stocks

The Nasdaq-100 experienced a near 7% decline in October, prompting a shift towards more stable market segments. The S&P 500 Equal Weight index increased by approximately 5%, while the consumer staples index saw a significant surge of 11.4%, trailing only the energy sector in performance.

“You’ve got to take what the market is giving you, and until we sort out some of the issues for the tech sector, some other groups might be better bets for the time being,” Cramer stated. He suggests focusing on consumer staples companies, which offer familiar brands and consistent demand regardless of economic conditions.

Among his recommendations is Kimberly-Clark, a recent addition to Cramer’s Charitable Trust portfolio. The company’s pending merger with Kenvue, owner of brands like Tylenol and Band-Aid, is expected to create efficiencies and strengthen its market position. Kimberly-Clark’s shares rose by almost 11% in October, currently trading at under 15 times earnings with a 4.7% dividend yield.

While Procter & Gamble was previously held by the Investing Club, Cramer maintains its appeal as a defensive investment, citing positive quarterly results and confidence in CEO Shailesh Jejurikar. P&G shares increased by 11% last month.

Constellation Brands, known for Modelo and Pacifico beers, is demonstrating signs of recovery, with its beer business gaining market share and its wine and spirits division experiencing 15% shipment growth. The stock jumped 20% in October and currently trades at roughly 11 times earnings with a dividend yield exceeding 3%.

Finally, Cramer favors Coca-Cola among major soda companies, highlighting a strong quarterly report driven by increased volume and innovation in zero-calorie and protein-based beverages. Coca-Cola’s shares rose 9% in October.