Cramer's Morning Take: P&G 1/23/24

Jim Cramer (0:01)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

Jeff Marks (0:08)

I think that the Procter story too, I mean, after years of where, well, not years, but inflationary costs really hurt their profitability, you're really starting to see the margins bounce back. Gross margins up 590 basis points on the currency neutral basis, six straight quarters, gross margins beating the street.

So that story, the market likes. And they raised the bottom end of the guidance. The midpoint was still a little bit below consensus, but if you do see China bounce back, then perhaps those numbers will look better.

Jim Cramer (0:36)

How about this point that I think is really important? At this stage in the cycle, consumers, we keep hearing is weaker, but they're trading up, and Procter's got a better view than any consumer products company.

Jeff Marks (0:48)

Yeah, no, especially in North America, they're seeing that, the trade-off, and it just speaks to the brand equity. Remember, they'll take a lot of their gains, they'll reinvest it in the products too, marketing, things like that. So that could be a reason why they're able to make a stand in terms of market share.

Jim Cramer (1:06)

Well, look, I think it's a very important position for us. I've become quite beleaguered in it because CEO Moller had been such a downer. When I say a downer, he accentuated the negative.

It's part of the job of the CEO to accentuate the negative and also accentuate the positive. And I felt he had stopped doing that. Join the CNBC Investing Club with Jim Cramer to catch my member-exclusive morning minis every day at 10:20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_3 (1:40)

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