Cramer's Morning Take: Proctor & Gamble, Palo Alto 5/18/23

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.

I've got to tell you, we're taking a few hits here. Now, some of that is because we've got some hawkish Fed talk. Some of it is because I think we're a little hung over from yesterday's so-called great day because the president cut shortest trip, and Speaker McCarthy said some positive things about a possible debt deal. But I will tell you point blank, I like to talk about our wins, you know that, and we did some of that yesterday, but you know what I led with yesterday, which is our losses and what we're getting hit, and we are taking some hits today.

Jeff Marks (0:39)

Yeah, taking some hits, coming off a big day, as you pointed out, Proctor & Gamble could be won, well, it is won, downgraded over at Truist to a home. Yep, they point out valuation looks like it's at its peak level and they say, this is interesting, they think the market is reading too much into that really strong quarter that they recently reported, saying that the investors may be overlooking the threat of trade down based off of Proctor's price increases that they pushed through.

Jim Cramer (1:11)

Even though Proctor said that there had been very little trade down, but Walmart did talk about smaller form factor, which is not trade down, by the way, there's just smaller form factor. Look, I am a big believer that Proctor has these jaunts, these giant moves, and the reason why I'm focused on Proctor is because I did a lot of work on the raw costs.

Jeff Marks (1:29)

Yes.

Jim Cramer (1:30)

And there's 11,000 raw costs that go into Proctor products, and every single one of them is down, and yet name me a single product that Proctor sells that is down in price, and that's not in the stock, and we do need a weaker dollar to be able to make my numbers, but I point this out because I recommended a stock repeatedly at my book of time when I did my total wine and more, and I'm very proud of that because when people come to see me, I hope you see me at Redondo Beach this, on Saturday, and people come to see me and they ask me what stock you like in our Charitable Trust, it was Proctor. It won't be Proctor this weekend because we changed things up. We had to talk about a stock yesterday. We'll not talk about it now, but this is still a buy, but I understand the market's forces.

Jeff Marks (2:09)

Yeah, you know, we've sold some three, four dollars higher.

Jim Cramer (2:14)

For the same reason we felt it had too much, but this is still, remember, we have a market where the NASDAQ is red hot. I'll take a stock that's up to that little, that's okay.

Jeff Marks (2:23)

Right, with the dividend you're collecting, too.

Jim Cramer (2:24)

I want to jump to the other stock because right now it's a thumb in my eye, which is Palo Alto Networks. I personally believe that Palo Alto is going to prove to be fine, just fine. But people are acting, they're fleeing because people feel, you know what? There's economic sensitivity. Now, just last night, Chuck Robbins on Cisco said there was economic sensitivity. We need to leave the stock drops, too, but then what happens? It runs.

So I am saying that be careful, those who are leaning against Palo Alto. Nikesh Arora is very good.

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