October was a rough month for technology stocks and a good month for the companies that sell everyday products. CNBC’s Jim Cramer told investors on Friday that this rotation is worth paying attention to — and he named four consumer staples stocks he finds attractive beyond the tech trade.
Consumer staples are the products people buy no matter what the economy is doing: tissues, diapers, soap, beer, and soft drinks. When investors get nervous about high-priced growth stocks, they often move money into these steadier businesses.
What Happened
Cramer said investors looking beyond the struggling artificial intelligence trade should consider consumer staples. The Nasdaq-100, which tracks the biggest technology stocks, ended October down almost 7%. The consumer staples index, by contrast, surged 11.4% in October, making it the second-best performing sector behind energy. The S&P 500 Equal Weight index, which treats every company in the S&P 500 the same rather than giving bigger companies more weight, gained roughly 5% for the month.
Cramer highlighted four companies: Kimberly-Clark, Procter & Gamble, Constellation Brands, and Coca-Cola. These are his opinions as a television commentator, not guarantees about future performance, and other investors may disagree.
Why It Happened
The rotation has a simple logic. Technology stocks had risen fast on excitement about AI spending, and their valuations left little room for disappointment. When big tech companies reported heavy AI spending and, in some cases, weaker-than-expected results, investors sold tech and bought more defensive stocks.
Consumer staples companies, by contrast, sell products with steady demand. People still buy tissues and toothpaste in a slowdown. That steadiness, plus dividends — regular cash payments to shareholders — makes these stocks attractive when the market feels risky.
The four picks
Kimberly-Clark, the maker of Kleenex tissues and Huggies diapers, gained nearly 11% in October. Cramer sees upside from its pending merger with Kenvue, which owns brands including Tylenol and Band-Aid. He expects the deal to create efficiencies and a stronger consumer products company. The stock trades at less than 15 times earnings and offers a dividend yield of 4.7%. It is also one of the newest holdings in Cramer’s Charitable Trust portfolio.
Procter & Gamble rallied 11% in October after better-than-expected quarterly results last week. Cramer said the company remains an attractive defensive holding, and he expressed confidence in new chief executive Shailesh Jejurikar. Note that Cramer’s own Investing Club exited its longtime Procter & Gamble position in July, so his current view is about the stock’s defensive appeal, not a claim that the club still owns it.
Constellation Brands, the maker of Modelo and Pacifico beers, surged 20% in October. Cramer pointed to signs of a turnaround: its core beer business is gaining market share, and its smaller wine and spirits division reported 15% shipment growth last quarter. The stock trades at roughly 11 times earnings and yields more than 3%.
Coca-Cola gained 9% in October after a strong quarterly report driven by higher sales volume rather than price increases. Cramer said it is the soda maker he favours among the major names.
Key figures
- Consumer staples index in October: up 11.4%
- Nasdaq-100 in October: down almost 7%
- S&P 500 Equal Weight in October: up roughly 5%
- Kimberly-Clark in October: up nearly 11%; under 15 times earnings; 4.7% dividend yield
- Procter & Gamble in October: up 11%
- Constellation Brands in October: up 20%; roughly 11 times earnings; dividend yield above 3%
- Coca-Cola in October: up 9%
Why It Matters
This story is less about four individual stocks and more about what investors do when a market leader stumbles. Money does not always leave the stock market entirely. Often it moves from one kind of stock to another — from fast-growing, expensive companies to slower, cheaper, dividend-paying ones.
That rotation can also be a warning sign. When defensive stocks lead the market, it often means investors are worried about growth, valuations, or the economy, even if they are not selling everything. It does not mean a recession is coming, but it does mean confidence in the hottest trade has cooled.
For ordinary investors, the lesson is about balance. A portfolio that holds only the fastest-growing stocks can fall hard when sentiment changes, as October showed. A portfolio that holds only defensive stocks may miss out when growth returns. Cramer’s argument is that staples deserve a place in that balance right now — not that they replace everything else.
What Happens Next
Watch whether the rotation continues into November. Apple reports earnings on Monday, November 2, and the monthly jobs report arrives later in the week. Strong results from big tech could pull money back into technology. Weak results could keep defensive stocks in favour.
Also watch Kimberly-Clark itself: it reports earnings in the coming week, and its planned merger with Kenvue remains a key part of Cramer’s case for the stock.
Final Thoughts
Cramer’s picks are opinions, and opinions from television commentators should never replace your own research. But the numbers behind his argument are real: staples rose 11.4% in a month when the Nasdaq-100 fell almost 7%. That gap is a useful reminder that markets move in cycles, and the stocks leading one month are not always the ones leading the next.
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.
Sources: CNBC (via Binance News summary of CNBC’s report), https://www.binance.com/en/square/post/10-30-2026-jim-cramer-likes-four-consumer-staples-stocks-beyond-tech-383016737198548 ; TradersUnion report on CNBC’s coverage, https://tradersunion.com/news/stocks/show/4043338-consumer-staples-stocks-investor-rotation/
Related reading: Coca-Cola’s quarterly report
