KM KMB Kimberly-Clark Loading... : Investor Sentiment and Bull/Bear Views

To hedge geopolitical and inflation risk, he says investors should not tilt toward low-beta, low-volatility stocks. That just loads up on interest-rate risk, so growth and defensive holdings both suffer if rates break higher, and staples such as Kimberly-Clark and Procter & Gamble get hit when inflation and oil rise. Instead he recommends buying oil and energy risk, including refiners.

Kimberly-Clark's closing of the Kenvue acquisition should immediately catalyze growth, especially in club and e-commerce channels where Kenvue was weak. It adds brands like Band-Aid, Tylenol, Neutrogena and Listerine and brings big cost takeout. Cramer thinks it was bought at a bargain after Tylenol-autism claims depressed Kenvue. The dividend (about 4.7% yield) will be preserved while debt is paid down. The Charitable Trust owns the stock.

Kimberly-Clark is a big, recent position in Cramer's charitable trust, bought starting in September and already showing a gain. He thinks the move is just getting started. The merger with Kenvue (the former J&J consumer health business with Tylenol, Listerine, Neutrogena and Band-Aid) would give the combined company 10 brands with over $1B in sales, efficiency gains and rare scale. He thinks Kimberly-Clark got Kenvue at a great value. The stock trades under 15 times earnings with a 4.7% yield and consistent earnings. He calls it an investment, not a trade, says to buy any dip before the deal closes, and thinks the closing could come sooner than expected.