Is This a Defensive Stock That Actually Works?
“It’s important to remember that you've got to stay diversified, and that means owning some defensive, consumer staple stocks that work even when the market is teetering,” Cramer said Tuesday.
The problem, the “Mad Money” host said, is that most staples have growth that is either suspect or stagnant. But he said one company is the answer to consumer products players’ prayers: International Flavors & Fragrances . The New York City-based company designs flavors for the food industry and fragrances for the personal care and perfume industries. It is the number two designer of scents and tastes, and has a 16 percent share of the $15 billion market total. However, Cramer believes that number is going higher because of the company’s growth overseas, particularly in emerging markets.
What’s more, IFF just reported a knock-out quarter Tuesday morning, with earnings coming in at $1.03 per share, 9 cents more than the analysts were looking for. Revenues also rose 9.2 percent year over year.
To find out more about International Flavors and Fragrance, Cramer spoke with CEO Doug Tough. Watch the video to see his full report.
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