Cramer: PepsiCo Among Elite Stocks

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Despite the down day, an elite few stocks finished the session higher. PepsiCo was among them.

This is the kind of stock that Cramer characterized earlier in the week as a company that can do no wrong. That is, one which benefits from the sharp decline in commodity prices.

These are the kinds of companies Cramer believes will continue to attract buyers when market jitters settle down.

"That's PepsiCo to a T," said Cramer.

Chances are you're familiar with this company, they're among the largest snack food and beverage makers in the world – products include Lay's potato chips, Fritos corn chips, Captain Crunch cereal, Tropicana orange juice and of course their signature soft drink, Pepsi.

"Their input costs include grains, cornsyrup, plastics for packaging, as well as gas to power their trucks," Cramer explained. And all these input costs are either moderating or going lower: "Just as important, PepsiCo was able to raise prices for its beverages this quarter."

However, it's not just declining commodity prices that have captured Cramer's interest. He's also very enthusiastic about management. "Indra Nooyi is at the helm and she runs the company incredibly well," he said.

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To support his thesis, Cramer cited recent earnings which were better than expected and despite weakness in the global economy Nooyi stood by the full year forecast, which calls for earnings to grow by 7%.

In addition, Cramer is bullish on small indulgences; that is simple things that people find comforting in a difficult economy. And the brands offered by PepsiCo are certainly popular if not beloved.

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All told, Cramer thinks the company and the stock are both positioned for strength.

"The market has been very bullish on defensive plays such as PepsiCo," he said. Combine that with lower input costs and strong leadership and a few other catalysts and "I think there could be more upside ahead."

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