In this unpredictable market, buy stock in spice and food giant McCormick, Jim Cramer says

Key Points
  • CNBC's Jim Cramer says spice maker McCormick is a stock worth owning as the market continues its recent unpredictability.
  • "As long as the market remains choppy, I think this stock is the kind of stock you buy on the way down,"  the "Mad Money" host says.
  •  "This is exactly the kind of name that money managers love to pile into when they're worried about an economic slowdown," Cramer adds.
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CNBC's Jim Cramer said Wednesday that spice maker and food company McCormick is a stock worth owning as the market continues its recent unpredictability.

"A straightforward consumer staple play like McCormick is just what the doctor ordered," the "Mad Money" host said. "As long as the market remains choppy, I think this stock is the kind of stock you buy on the way down ... and I like it even more after today's pullback."

Cramer said he has long been a fan of McCormick, but pointed to a few factors that make the Maryland-based company a particularly attractive investment right now.

For starters, Cramer said he sees more positives for McCormick than its quarterly earnings numbers showed.

McCormick beat earnings estimates this week but their sales came in a little lower than expected, up 1% year over year. Management also lowered its full-year sales forecast, even as it raised its full-year earnings forecast.

But Cramer said CEO Lawrence Kurzius' conference call offered assurance about McCormick's strong position in the face of economic slowdown, fears of which have contributed to the market's two-day sell-off.

The fact McCormick's portfolio now includes names like Frank's RedHot and French's mustard is a reason why the stock is a good one to own, Cramer said. McCormick acquired those brands in a $4.2 billion deal in 2017.

"Frank's hot sauce saw major distribution gains and record-high household penetration," Cramer said. "...Across the whole [Frank's] portfolio, McCormick saw double-digit consumption growth. I regard it as incredible."

McCormick also has displayed marketing savvy with the French's brand, Cramer said, giving him confidence the company can deftly navigate the new media landscape to drive revenue.

With its geographic reach and wide-ranging portfolio, McCormick is "a classic consumer staple that can keep hitting their forecasts even if the economy falls off a cliff," Cramer argued.

McCormick's stock closed down around 1.3% on Wednesday to $164.74. That decline followed a surge of more than 6% on Tuesday amid broader market losses.

"Some of that's because the company reported an OK quarter and the stock had pulled back going into the report," Cramer said.

But Cramer said there is actually something else at play: the stock rose not despite the broader market declines, but because of them.

"This is exactly the kind of name that money managers love to pile into when they're worried about an economic slowdown," Cramer said. "In other words, McCormick may be the perfect stock for this moment, and thanks to today's market-wide meltdown, you can actually buy this thing a little bit lower than it was yesterday."

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Jim Cramer: In this unpredictable market, buy the stock of spice maker McCormick

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