CNBC’s Jim Cramer on Friday named packaged food stocks that might be good additions to portfolios, especially if the economy is headed for a slowdown. Though they were not perfect, he was encouraged by earnings this week from Campbell Soup and J.M. Smucker.
“We’ve had enough signs of weakness that it might be a good idea to own some recession stocks — the stocks of companies that make the same money in good times and bad because their products are essential,” he said. “For example, the packaged food plays.”
Cramer said he thinks Campbell Soup and J.M. Smucker both told “compelling” stories this week, but that he prefers the former. According to Cramer, Campbell Soup reported solid earnings but weaker guidance, due in part to its pricey acquisition of pasta sauce maker Sovos Brands. He suggested the acquisition will pay for itself over time and was encouraged that the company seems to…
