Jim Cramer says purchase P&G amid a weakening U.S. greenback

The current weak spot within the U.S. greenback ought to present a elevate to shopper staples big Procter & Gamble (PG), CNBC’s Jim Cramer mentioned Tuesday.

Again in October, P&G — the maker of Crest toothpaste, Tide laundry merchandise and Pampers diapers — had warned that foreign-exchange headwinds have been going to weigh on its fiscal 2024 gross sales progress and offset an anticipated profit from decrease commodity prices. However since then, the U.S. greenback index (DXY) has fallen about 2%.

“The greenback is sinking like a stone,” Cramer mentioned, noting that the DXY, which measures the buck in opposition to six different currencies together with the yen and the euro – is now buying and selling it its lowest stage since mid-September.

Because of this, P&G appears significantly better positioned to deal with the foreign-exchange dynamic, Cramer mentioned, whereas the commodity deflation tailwind stays intact. Cramer’s Charitable Belief, the portfolio utilized by the CNBC Investing Membership, has a stake in P&G.

“The greenback just isn’t going to kill them, and so you purchase P&G and simply experience it,” Cramer mentioned. “P&G is so significantly better than it was.”

P&G shares edged up by about 0.1% Tuesday, to roughly $152.60 every, on the again of a three-day profitable streak.