Cramer recommends four consumer staples as tech stocks falter

CNBC host Jim Cramer advised investors to look beyond struggling technology stocks and consider consumer staples companies on Friday. He suggested that traders might find better opportunities in defensive sectors while the tech sector resolves current issues. Cramer noted that the market currently favors these stable groups.

The Nasdaq-100 index, which tracks large technology firms, finished October down almost 7%. In contrast, the consumer staples sector rose 11.4% during the same period. This performance placed it second only to the energy sector. The S&P 500 Equal Weight index, which assigns equal value to all components, gained roughly 5% for the month.

Cramer identified Kimberly-Clark as a primary holding within his Charitable Trust portfolio. The company, known for Kleenex and Huggies, is merging with Kenvue, the owner of Tylenol and Band-Aid. Cramer expects this deal to create operational efficiencies. Kimberly-Clark shares rose nearly 11% in October, yet the stock trades at less than 15 times earnings with a 4.7% dividend yield.

Procter & Gamble shares rallied 11% in October following better-than-expected quarterly results. Although the Investing Club exited its long-term position in the company in July, Cramer remains confident in its defensive appeal. He expressed support for new CEO Shailesh Jejurikar. However, Cramer prefers Kimberly-Clark due to its lower valuation and higher dividend yield.

Constellation Brands, the producer of Modelo and Pacifico beers, surged 20% in October. The company reported a 15% increase in shipments for its wine and spirits division in the last quarter. Its core beer business is also gaining market share. The stock trades at approximately 11 times earnings and yields more than 3%.

Coca-Cola shares gained 9% in October after the company released a strong quarterly report on Tuesday. The results were driven by higher sales volume rather than price increases. Cramer praised the company's innovation in zero-calorie beverages and its protein options through the Fairlife milk business.