McCormick (MKC) Will Continue to Lead on Innovation, Presence - Cramer

February 7, 2013 11:33 AM EST
McCormick (NYSE: MKC) is one spicy stock investors shouldn't miss out on, according to stock sage Jim Cramer.

Shares of McCormick are about flat since reporting fourth-quarter results on January 24th. The company missed EPS estimates by three cents while lowering its guidance for 2013.

McCormick typically sees some selling following quarterly results, with this year being no exception. Cramer notes that a rebound usually follows and over the past 10 years, owning McCormick was a better bet than owning the S&P as a whole.

Management at McCormick attributed results in part to disruptions caused by Hurricane Sandy as well as a higher tax rate expected in 2013. Amid the pressure, McCormick still plans on growing 8 percent to 10 percent through the year.

Having a 50 percent control of the market isn't stopping McCormick either; for example, the company introduced 25 new products in just the last month, notes Cramer.

Though McCormick might seem pricey at 19.7 times earnings, Cramer notes that shares have typically traded in that range and the recent selloff should be seen as a buying opportunity.

McCormick is up 0.8 percent on the session Thursday.

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