Jim Cramer makes the bull case for consumer goods stocks

CNBC’s Jim Cramer on Wednesday told investors to consider adding shares of well-established consumer packaged-goods companies to their portfolios.

“Nobody’s championing what actually works: these old-line consumer packaged-goods names that we all know,” he said.

Cramer highlighted three companies’ most recent quarterly results as examples of why investors should have such stocks on their shopping lists:

“I bet we get something similar from Bristol-Myers, Coca-Cola and Eli Lilly [when they report earnings],” he said.

Cramer also reiterated two points that he’s made throughout this year: invest in boring companies with solid balance sheets and avoid money-losing companies that will likely struggle in a recessionary environment.

“The stocks that historically hold up best in recessions have been lost in the shuffle, namely the high-quality, well-capitalized companies with good balance sheets, big buybacks, meaningful dividends,” he said.

Disclaimer: Cramer’s Charitable Trust owns shares of Procter & Gamble, Johnson & Johnson and Eli Lilly.