Kroger is a security inventory that may stand up to inflation, Jim Cramer says

Grocery retailer Kroger is sustaining its place as a powerful performer as rivals battle with inflationary pressures, CNBC’s Jim Cramer mentioned Monday.

“We’ve got the worst inflation in decades, which is bad news for the whole industry except Kroger, which we know is coping just fine with inflation and even has expanding gross margins,” the “Mad Money” host mentioned.

“We know Kroger’s safe because they’re doing great right now, and if the Fed tightens too aggressively, causing an actual recession, this stock will only get more attractive because it’s exactly what money managers like to own when they’re worried about a real slowdown,” he added.

Cramer’s feedback come after the Federal Reserve raised rates of interest by a quarter-percentage level on March 16, spurring a market rally. Chair Jerome Powell mentioned Monday the Fed may implement extra aggressive rate of interest hikes for the remainder of the yr to fight inflation, main shares to fall in a risky buying and selling session.

Kroger inventory fell 0.25% on Monday. The grocery chain, which noticed a lift in the course of the pandemic as shoppers turned to at-home cooking, forecast annual same-store gross sales and revenue above Wall Street expectations in its most up-to-date quarterly earnings report. Kroger’s same-store gross sales, minus gasoline, elevated 4% within the fourth quarter.

Cramer attributed Kroger’s latest success to the corporate’s large-scale and omnichannel enterprise that allowed it to construct out a powerful digital presence as extra prospects flip to supply and pick-up choices. The host additionally highlighted the corporate’s high-profile partnerships, together with with Starbucks and DoorDash. 

Sign up now for the CNBC Investing Club to comply with Jim Cramer’s each transfer out there.

Disclaimer