Jim Cramer didn’t like financials or technology companies in recent weeks and he rarely recommended stocks in those sectors. Tech stocks suffer from seasonality and financial stocks are out of favor because of concerns about the European debt crisis. However, he has been bullish -- generally bullish -- about consumer stocks. The reason is these companies don’t really see any slowdown in the economy and they are generally able to increase their profits. Here are the consumer stocks Jim Cramer recommended the on “Mad Money” over the last 30+ days.
Personal care brand Kimberly-Clark (KMB) is trading at about $68. That's about $5 higher than 30 days ago. On August 4, Cramer said this paper company had been a long-time favorite of his, but he hadn’t been able to recommend it as of late due to the high oil-related raw costs. Since the price of oil had plummeted at that point, however, Cramer thought it was an opportunity to buy. He again recommended it on August 9. He thought the consumer staples company was benefiting from the decline in oil prices. The majority of KMB's products require significant amounts of energy to produce, he said, adding that Kimberly-Clark was yielding close to 4.5%. Cliff Asness' AQR increased its position in KMB by 38% during the second quarter. The hedge fund now has the second largest position in the stock among the 300+ hedge funds we are tracking.
Athletic product behemoth Nike (NKE) has risen about $6 since its ~$79 point a month ago. On August 10, Cramer said he approved of management's long term plan and thought NKE was a reasonable investment.
Yoga-inspired apparel maker Lululemon (LULU) is up about $8 since its $49 point a month ago. Cramer recommended it on September 7. Cramer said he thinks the best way to play this athletic apparel maker is through deep-in-the-money calls because of the dramatic moves the stock has made since no split occurred. The company has a $5.86 billion market cap and trades at 60 times earnings.
Deckers Outdoor (DECK): Cramer recommended this twice over the past 30 days. On August 12, Cramer indicated it was a perennial favorite, and that Deckers Outdoors continues to bounce back after every sell-off. On August 17, Carmer said that although the stock took a 6.85% hit that day, Cramer still recommended it long term.
SodaStream (SODA): Cramer talked about this stock four times over the last 30+ days as well. On August 4, he said the only way to play the company going into earnings is a deep-in-the-money call to protect yourself from potential downside. The next day, he said he believed the move would be the only way to play the stock since the Christmas season would be especially strong for the company.
On the 15th, he said that the high-flying earnings stock had suffered a meltdown, particularly because of an awful guidance. Although the company‘s unit sales were up 226% from last year, SodaStream practically announced “we‘re done as a growth stock," said Cramer. Cramer felt that the company’s comments against mega-retailer Costco (COST) hurt it as well. SodaStream is concerned that Costco won’t display or demonstrate its machine well enough to entice consumers, Cramer said. He advised taking some profits from this company back in July, and he said during the show that it had become clear that SodaStream would not be the new Keurig from Green Mountain (GMCR). The difference is Keurig was, Cramer said, transforming a market. SodaStream is attempting to create a completely new market.
Crocs (CROX): On August 17, Cramer admitted to missing the run-up in the niche footwear company, but said he would recommend it if it went back down to $24 per share. Crocs is now trading close to $26, about the same as it was a month ago.
Ford Motor (F) is trading at $10 and change right now, pretty much at the same level as it was a month ago. Cramer was bearish about this stock on August 22. “The first stock people sell when going into a recession is car companies, no matter how well they are doing,” Cramer said. He also pointed out that most fund managers now think that a recession is coming and they won’t be buying Ford. Ford is one of short-seller Jim Chanos’ short positions.
Phillip Morris International (PM): Cramer recommended this on the 22nd as well. The stock is trading around $69, a 34% gain since a year ago. On the 22nd, a viewer inquired whether PM is the best tobacco stock with both growth and high dividend yield. Cramer agreed and pointed to the fact that the stock didn’t really go down despite the huge decline in the market. He said this was one of his favorite tobacco companies even though he didn’t like tobacco. Hedge fund manager Jim Simons had more than $240 million in PM at the end of June. On September 7, Cramer said PM was better than Vector Group (VGR).
Hain Celestial (HAIN): Cramer recommended this on August 25. Then, the maker of natural and organic foods delivered a $0.02 cents earnings beat on a $0.33 cents basis. The company experienced 31% year-over-year growth, which is unheard of for a food stock. CEO Irwin Simon said 12-13% of that growth is organic. Despite this positive news, Cramer said, the stock is about 6 points off its high thanks to broader market weakness. Cramer thought that presented a buying opportunity for this long-term growth stock.
Dana Holdings (DAN): Cramer recommended this on September 6. Cramer said this auto parts maker is proof that while companies in tough markets can get hammered, they can be cyclical smoke stacks that are poised to rebound if the fundamentals are solid. Dana Holdings has a $1.8 billion market cap. TRW Automotive Holdings (TRW) and Tenneco (TEN) are two similar companies Cramer thinks share the same sentiment. This stock increased around 1500% since March 2009.
Green Mountain Coffee Roasters: Cramer liked this on September 6. The maker of the popular Keurig single-cup machine has seen its stock rise 3,500% during the past five years. Cramer credits the success of Green Mountain and SodaStream to creating machines that make consumers’ lives simple. Green Mountain reported a great quarter and still has room to run as it expands into more countries.
On September 7, Cramer said that since the car-part industry is booming as of late, Accuride (ACW) is a great way to play it now that the price has fallen in half. The company has a $390 million market share and is trading around $8 per share.
Coach (COH): Cramer recommended this stock on September 7. The stock is trading at around $55 right now, up 10% from a month ago. Ken Fisher's Fisher Asset Management increased its position in Coach last quarter by 88%, giving it just over 6 million shares.
Hansen Naturals (HANS): This beverage company makes Monster energy drink and 90% of sales and profits come from the energy drink. Cramer sees growth in the company’s future and recommends buying on a pullback. The beverage maker has a $7.75 billion market cap and trades at 31 times earnings.
Disclosure: I am long PM.