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Cramer’s 10 Stocks You Might Have Overlooked

Monday, 9 Jul 2012 | 8:10 PM ET

As investors worry about weak economic data from Asia and signs of economic trouble in Europe, they are missing out on winning stocks that should be “obvious,” said Jim Cramer on CNBC’s “Mad Money.”

After all, the underlying companies make products that are popular in most American homes. Shares of these companies are thriving, even amid an uncertain stock market and sluggish global economy.

To provide a few examples, Cramer highlighted an array of products he uses daily, which happen to be made by companies that currently boast very attractive stocks. He thinks each stock is worth considering.

Read on for Cramer’s 10 Stocks You Might Have Overlooked

Church & Dwight (CHD)

From Arm & Hammer liquid laundry detergent to Trojan condoms, Church & Dwight makes a variety of consumer goods, including an electric toothbrush that Cramer uses every day.

Church & Dwight is a terrific innovator that focuses on the U.S. market, Cramer said. It’s also one of his favorite stocks. Shares of the Princeton, N.J.-based company have gained nearly 25 percent year-to-date.

Colgate toothpaste.
Colgate toothpaste.

Colgate-Palmolive (CL)

Whenever Cramer wants to brush his teeth, he reaches for a tube of Colgate brand toothpaste.

The New York-based company seems to be “winning the battle for lesser developed nations,” Cramer said. Its stock has posted a 12 percent gain year-to-date.

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B9B
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QRE
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Johnson & Johnson (JNJ)

Johnson & Johnson
AP
Johnson & Johnson

From dental floss to Q-tips brand cotton swabs and Band-Aid brand adhesive bandages, Cramer regularly uses a lot of Johnson & Johnson products.

Cramer said shares of the consumer goods maker struggled under the leadership of former CEO William Weldon, but things are looking up now that Alex Gorsky is at the helm. Today, Johnson & Johnson’s stock boasts a juicy 3.6 percent dividend yield.

“The Brothers Johnson are paying you to wait, as Gorsky either streamlines the place or breaks it up into several different divisions, like household products, fast growing pharma and slower growing medical devices,” Cramer said. “You have a stock that’s worth substantially more than it’s currently trading for under this new regime.”

Read on for Cramer’s 10 Stocks You Might Have Overlooked

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QRE
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JNJ
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The entrance sign to Kimberly-Clark Corporation world headquarters campus in Irving, Texas, Sunday, Jan. 22, 2006. Kimberly-Clark Corp., maker of Kleenex tissues and Scott paper towels, announced Tuesday, Jan. 24, 2006 that fourth-quarter earnings tumbled 17 percent as one-time costs cut into profits, offsetting higher revenue. Earnings fell to $371.1 million, or 79 cents per share, from $445.3 million, or 91 cents per share, a year ago. Sales edged up 3 percent to $4.01 billion from $3.9 billio
L.m. Otero
The entrance sign to Kimberly-Clark Corporation world headquarters campus in Irving, Texas, Sunday, Jan. 22, 2006. Kimberly-Clark Corp., maker of Kleenex tissues and Scott paper towels, announced Tuesday, Jan. 24, 2006 that fourth-quarter earnings tumbled 17 percent as one-time costs cut into profits, offsetting higher revenue. Earnings fell to $371.1 million, or 79 cents per share, from $445.3 million, or 91 cents per share, a year ago. Sales edged up 3 percent to $4.01 billion from $3.9 billio

Kimberly-Clark (KMB)

Cramer also keeps Kleenex brand tissues in this bathroom, which are made by Kimberly-Clark.

The Kleenex brand is so strong that it likely helped the company’s stock post a 14 percent gain this year, Cramer said. Its 3.5 percent dividend yield is another reason to own this stock, he added.

Procter & Gamble (PG)

Procter and Gamble
Procter and Gamble

Cramer’s deodorant of choice is the Old Spice brand, which is made byProcter & Gamble.

To Cramer, Procter & Gamble is a “terrific company that happens to be burdened with terrible management.” Procter & Gamble’s stock sports a 3.65 percent dividend yield, though. Cramer said its juicy dividend yield is paying investors to wait for the eventual ouster of CEO Bob McDonald, which he thinks would immediately send the stock higher.

Continue reading for Cramer’s 10 Stocks You Might Have Overlooked

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Clorox headquarters in Oakland, California
Photo: Joseph Thornton
Clorox headquarters in Oakland, California

Clorox (CLX)

When it’s time for Cramer to shave, he likes to use Burt’s Bees brand shaving cream because it’s natural.

Clorox has admitted it overpaid for the natural personal products maker, but Cramer thinks it’s now getting its money’s worth for the acquisition. That’s only one reason Cramer likes its stock, though. It currently pays a 3.5 percent dividend yield, for example. And CEO Donald Knauss is a “serial dividend raiser,” Cramer said.

CVS Store
AP
CVS Store

CVS Caremark (CVS)

Cramer typically buys most of his consumer goods at his local CVS.

The pharmacy store operator has been taking share from rival Walgreen, Cramer said, making CVS a “buy, buy, buy!”

Read on for Cramer’s 10 Stocks You Might Have Overlooked

  Price   Change %Change
B9B
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QRE
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CLX
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CVS
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JNJ
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KMB
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PG
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Dunkin Donuts
Mario Tama | Getty Images
Dunkin Donuts

Dunkin' Brands (DNKN)

Cramer doesn’t typically have time to get his morning coffee at his local Dunkin’ Donuts, but he does make a pot of Dunkin’ brand coffee at home.

Dunkin' Brands' stock has posted a 37 gain year-to-date.


Dean Foods (DF)

Every morning, Cramer adds WhiteWave-Alpro brand soymilk to his coffee, which an organic product made by Dean Foods. Its stock has skyrocketed 45 percent higher year-to-date.

Continue reading for the last of Cramer’s 10 Stocks You Might Have Overlooked

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B9B
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QRE
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CLX
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CVS
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DF
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DUNKIN
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JNJ
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KMB
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PG
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PepsiCo (PEP)

Cramer said he never starts his day without a tall glass of Tropicana orange juice, which is made by PepsiCo.

The soft drink maker’s stock not only pays a 3.5 percent dividend yield, it’s gained 5 percent year-to-date. Cramer thinks the stock could continue to push higher, too.

“I think there’s much more ahead as the price of its commodity inputs has come crashing down, allowing the company’s margins to head higher,” Cramer said. “Pepsi’s got one of the smaller exposures to Europe for a packaged goods play and that means it could be one of the more successful packaged goods stories after a long hiatus in upside.”

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B9B
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QRE
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CLX
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CVS
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DF
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DUNKIN
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JNJ
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KMB
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PEP
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PG
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—Reuters contributed to this report

When this story was published, Cramer's charitable trust owned Clorox and CVS Caremark.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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

  Price   Change %Change
CHD
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CL
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CLX
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CVS
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DF
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DUNKIN
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JNJ
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1767
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PEP
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PG
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WAG
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