Jim Cramer has multiple reasons to like Procter & Gamble , even as the consumer packaged goods sector remains out of favor. “Procter is my favorite stock,” Jim said Tuesday during the Morning Meeting for Investing Club members, pointing to what he described as an increasingly attractive setup for long-term investors. For starters, P & G stock is cheap. While shares have dropped 10.5% year-to-date, Jim sees opportunity. With a price-to-earnings ratio of just over 20 times next 12-month estimates, Jim said P & G is trading at one of the least expensive multiples he remembers seeing for the company behind Tide, Crest, Gillette, and dozens upon dozens of other brands. P & G is also getting a new CEO in January. Company veteran Shailesh Jejurikar, promoted from chief operating officer, is expected to “clean house,” according to Jim, in a restructuring plan to accelerate sales and reinvigorate the business. “You want to be in [the stock] on the ground floor of a new CEO at Procter & Gamble,” Jim said during the Club’s December Monthly Meeting , suggesting Jejurikar’s strategies to turn around the company should translate to a higher stock price. PG YTD mountain PG stock performance YTD. To be sure, things may get worse before they get better. During P & G’s fiscal 2026 first-quarter earnings call on Oct. 24, management already told investors it is going to miss the next quarter, saying it will be the “softest growth quarter for the year.” The team added that stronger growth is expected in the back half of fiscal 2026. If that scenario were to play out, Jim thinks the stock may do nothing. But if the upcoming quarter isn’t as bad as feared, “then the stock will take off, and it’s never going to look back,” he explained during the Monthly Meeting. Jim’s conviction stems from P & G’s strong historical track record. Fiscal Q1 marked the 40 th consecutive quarter of organic sales growth, which kept the business on track for its 10 th straight year of core earnings per share (EPS) growth. That fundamental business strength is a core reason why we initiated a position in the company last month. We made our most recent buy earlier this month after Procter & Gamble CFO Andre Schulten described the U.S. market as the “most volatile we’ve seen in a long time.” As Jeff Marks, director of portfolio analysis for the Club, wrote in our Dec. 2 trade alert: “If there is a silver lining to this downbeat news, it’s that Schulten said a tougher U.S. backdrop is already factored within the guidance range the company previously provided when P & G reported its fiscal 2026 first-quarter results in October. Over fiscal 2026, the company expects organic sales growth in the range of flat to up 4% versus the prior year and core earnings per share growth of flat to up 4% year over year.” The economic backdrop could also turn into a tailwind. While P & G can perform in all kinds of macro environments because its products are used daily, lower borrowing costs and sinking oil…
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