Cramer: Trick to Picking Winners

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If you're looking for a steady-eddie stock, Jim Cramer has a little trick.

He says as you're trying to figure out what's working in this market, identify stocks that perform well not only on good days but on bad days too.

That is identify a stock that performs relatively well when the S&P 500 closes higher and when it also closes lower.

Those are the kinds of stocks that the Mad Money host likes to put on his radar.

Adam Jeffery | CNBC

And right now he's got Kimberly-Clark on his radar because whether the tape is up or the tape is down, the stock continues to advance.

Year to date Kimberly-Clark has gained about 25%; that's a sharp move higher for any company, let alone one which makes diapers and tissues.

However, investors consider the consumer staples giant a relatively safe stock and therefore it's attracted buyers as a defensive play. Also with a 3% dividend yield, investors who are seeking return have also bid shares higher.

As a result Kimberly-Clark now sells for 19 times earnings.

But despite the advance, Jim Cramer thinks the stock should have more room to run. In part that's because as the maker of Huggies and Kleenex the company has an extremely loyal customer base.

Looking at recent earnings, Cramer likes what he sees.

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For the three months ended March 31, Kimberly-Clark Corp. earned $531 million, or $1.36 per share. That compares with $468 million, or $1.18 per share, a year earlier.

Analysts polled by FactSet expected earnings of $1.33 per share.

The company also increased full year guidance to $5.60 to $5.75 per share. That was better than $5.59 per share that analysts had been predicting.

Cramer thinks these results reflect just how well run the company is.

"Every single time I've thought about backing away from this stock because of its valuation, the darned thing has just kept going higher," Cramer said.

Call Cramer: 1-800-743-CNBC

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