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Take Cover in Campbell Soup

Campbell Soup is the latest pick is Cramer’s portfolio of recession-proof stocks.

This food company has been a serial underperformer. Campbell is down 35% over the past 10 years and it missed four straight quarters before finally pre-announcing that 2008 earnings should come out on the high side of previous estimates.

But there are factors that are starting to move in Campbell’s favor. Grain prices are down, the company’s expanded overseas, new products are elbowing market share from competitors, and price increases are boosting revenues.

With General Mills and Kellogg at or near their 52-week highs, Campbell’s looking cheap. As the flight to safety continues, there’s a good chance institutional money will move into this stock.

Then there’s the weak dollar. If Anheuser-Busch can get bought out by a big firm that deals in euros, then so can Campbell, Cramer said.

Oh, and there’s a buyback too. Campbell is on track to repurchase $1.2 billion worth of its shares, or 9.2% of the company’s market cap.

The bottom line? We’ll spare you the “mmm, mmm good” reference. But you get what we mean.




Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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