Cramer likes Clorox because it makes everything from cleaning products, such as Pine-Sol, to cat litter under the Fresh Step brand, as well as Hidden Valley Ranch salad dressing and Kingsford’s charcoal, among many other products. People don't stop buying these items because of the economic slowdown, Cramer said. The company does have to deal with rising commodity costs and it's also facing competition from generic brands, but he thinks these issues are already baked into the stock.
Clorox is selling for 16 times earnings, with a 10 percent growth rate. It also pays a 3.5 percent dividend yield. Cramer recommends investors start building a position now and buy more on the way down.