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

Grocery retailer Kroger is sustaining its place as a robust performer as opponents wrestle with inflationary pressures, CNBC’s Jim Cramer mentioned Monday.

“We have got the worst inflation in a long time, which is unhealthy information for the entire business besides Kroger, which we all know is coping simply tremendous with inflation and even has increasing gross margins,” the “Mad Money” host mentioned.

“We all know Kroger’s protected as a result of they’re doing nice proper now, and if the Fed tightens too aggressively, inflicting an precise recession, this inventory will solely get extra engaging as a result of it is precisely what cash managers prefer to personal after they’re fearful about an actual slowdown,” he added.

Cramer’s feedback come after the Federal Reserve raised interest rates 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 12 months to fight inflation, leading stocks 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 Avenue expectations in its most recent 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 robust 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

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