Jim Cramer Says Falling Oil Prices Make PepsiCo His Next Stock Pick
Jim Cramer named PepsiCo (PEP) his next stock idea on Wednesday's Mad Money. He built the pick on falling oil prices instead of chasing Nvidia or Salesforce.
The CNBC host framed PepsiCo as a value play. He tied it to his broader view that oil is falling and inflation is peaking. Cramer called it a starting point, not yet a position.
A Falling-Oil, Peaking-Inflation Worldview
Cramer's process starts with a call on rates and inflation before he names any stock. He said the economy looks stable barring a shock out of Iran or Ukraine.
He pointed to easing crude prices as his clearest sign that inflation is topping out. Oil fell nearly 3% this week as Iran and Oman resumed talks on a Strait of Hormuz shipping corridor.
Cramer also downplayed Federal Reserve Chair Kevin Warsh, whose Jackson Hole debut speech lands Friday. He argued a hike is unlikely while the Treasury is already working to hold down long-term borrowing costs.
Why PepsiCo Beat Nvidia and Salesforce to the Pick
Tech was the obvious starting sector, but Cramer said Nvidia and Salesforce had already jumped on strong earnings. Buying either now, he said, would mean chasing a move that already happened. He pointed to Nvidia's blowout quarter results as an example.
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