Mad Money

Jim Cramer says it's too soon to tell how GLP-1 weight loss drugs will affect food stocks

Key Points
  • CNBC's Jim Cramer on Tuesday said it may be too soon to tell how GLP-1 diabetes and weight loss drugs will change companies, especially ones that sell junk food.
  • Cramer referenced FritoLay-owner PepsiCo's Tuesday earnings report, which beat Wall Street estimates and sent its stock up.
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CNBC's Jim Cramer on Tuesday said it may be too soon to tell how GLP-1 diabetes and weight loss drugs will affect the stock of companies like Walmart or PepsiCo that sell food.

"Remember, it's one thing for interest rates to go higher and quash these stocks along with so many others. It's another thing to put your stock portfolio at risk of an earnings miss, especially when the stock's more expensive than the rest of the market," Cramer said. "So, yes, I take it as gospel that Walmart's seeing a slight slowdown, no reason to doubt them, but I also take it as gospel that PepsiCo's doing fine, at least so far."

Walmart said last week it is seeing a "slight change" in food-shopping habits, some of which may be due to customers buying less while using appetite-suppressing medications like diabetes drugs Mounjaro or Wegovy, Bloomberg reported.

FritoLay owner PepsiCo saw its stock rise Tuesday when the company reported a solid quarter that beat Wall Street estimates and raised its earnings outlook. Cramer suggested PepsiCo's report could mean the drinks and snacks maker shouldn't fear the popularity of weight loss drugs, but he emphasized that it's too soon to tell either way.

Cramer also advised that investors take an interest in the bond market, locking in 10-year Treasurys while yields are high.

"I don't know how the weight loss drug situation will play out, but I do know bonds are making a stand, which is a good reason to lock in both the 10-year and maybe even grab some shares of PepsiCo, at least at these levels, before they both move too high to be worth grabbing," he said.

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