Jim Cramer: these three stocks will do well in a recession

Don’t let the fear of recession push you into avoiding equities altogether, said famed investor Jim Cramer this morning on CNBC’s “Make It”.  

Cramer backs investing in consumer staples

A simple way to navigate a recession, as per the Mad Money host, is to pick consumer staples. One name in particular that pops out to him in this space, is Procter & Gamble Co (NYSE: PG).

Do you brush your teeth and wash your hair in a recession? If yes, then buy Procter & Gamble. It’s a company that’s increased its dividend for about sixty years. It tends to do great in a recession.

In April, P&G reported market-beating results for its fiscal Q3 and raised its sales guidance for the year. The stock is down more than 10% for the year.

What else does Cramer like for a recession?

Two more names that Cramer deems great picks for a recession are Coca-Cola Co (NYSE: KO) and Constellation Brands Inc (NYSE: STZ), both of which have a history of doing well in a recession.

Look at what companies have historically done well in a recession and you’ll find Coca Cola. Their sales don’t go down in a recession. Beer actually goes up in a recession. So, there’s Constellation Brands that makes Modelo and Corona.

KO and STZ also reported solid quarterly results last month. Wall Street, on average, sees a more than 10% upside from here in both stocks.