Jim Cramer Says Investors Can Hide In These Three Recession-Proof Packaged Food Stocks

CNBC’s Jim Cramer on Thursday gave investors three options for packaged food stocks to take refuge in while the stock market continues to fluctuate.

“If commodity costs fall sharply, food stocks can become recession-proof safe havens. But you have to be selective, which means sticking with the winners who we know are doing well,” he said.

All three major indices fell on Thursday, the last day of the second quarter. The Dow Jones Industrial Average and S&P 500 had their worst quarters since the first quarter of 2020, while the Nasdaq Composite had its worst declines since 2008.

The Mad Money host said packaged food supplies are a great play in turbulent times and fit the current market for two main reasons.

“First, commodity prices have already started collapsing, and those savings flow straight into the bottom line. … Second, almost everyone seems convinced we’re headed for a recession, and while I’m not entirely convinced, that sets a much better backdrop for Steady Eddie’s packaged food supplies,” he said.

Here are his three top picks:

Campbell topped its sales and earnings numbers last quarter and also raised its full-year sales guidance.

Kellogg said last week that it plans to split into three separate companies that will split its brands into snack food, cereal and plant-based segments.

General Mills beat Wall Street estimates for sales and earnings in its most recent quarter, though its full-year earnings outlook is lower than analysts’ estimates. The stock hit a new 52-week high on Thursday.