Seasoned market commentator Jim Cramer explained to investors on Tuesday why he believes recently underperforming consumer staples stocks are now attractive investment opportunities, specifically highlighting undervalued industry leaders like Procter & Gamble (PG.US) and Kimberly-Clark (KMB.US).

Cramer noted that Wall Street has been broadly pessimistic about the consumer staples sector due to high inflation and sluggish growth. "My concern now is that we might be missing the bottom for a group of stocks I’ve long been skeptical about," he added.

He argued that inflation may have peaked, which would help reduce costs for consumer goods giants. Additionally, the Trump administration’s relaxed antitrust enforcement has made mergers easier, allowing companies to strengthen their market dominance.

Cramer referenced Kimberly-Clark’s recent announcement to acquire Kenvue, praising the latter’s brand strength—despite unverified safety concerns raised by Trump administration officials about its blockbuster drug Tylenol. He also commended Procter & Gamble as an innovative, large-scale company capable of lowering product costs through economies of scale.

Cramer also turned his attention to Clorox (CLX.US), one of the worst-performing S&P 500 components, expressing admiration for its namesake cleaning products and brands like Burt’s Bees, Hidden Valley, and Brita. For risk-tolerant investors, he suggested considering General Mills (GIS.US), but only as a speculative bet on a potential acquisition, given the pressure on food stocks from the popularity of weight-loss drugs.

He further advised shifting focus from traditional consumer staples to the pharmaceutical sector, anticipating major M&A activity. Companies like Johnson & Johnson (JNJ.US) and Amgen (AMGN.US) stood out as his top picks.

"These stocks are among the most hated in the market right now, but the opportunities are too significant to ignore," Cramer concluded.