Payment-processor stocks like Visa (V) look promising for 2018, but utilities and most consumer-product companies don't, Jim Cramer says.

"What do I love [and] what do I hate?" Cramer said during his latest monthly conference call with members of his Action Alerts PLUS club for investors. "I do not like these consumer-product companies, except for ones that have very good growth. ... Conversely, what's too low? I think some of the payment processors."

Specifically, Cramer said:

Consumer Stocks Look Bad (Except for PepsiCo)

Cramer said his charitable trust owns PepsiCo (PEP) because "that's got the best growth in the industry and it's almost at its 52-week high.

"But the vast majority [of consumer-products companies] are in what we call 'the center of the store,' and I think that they should be sold," Cramer said. "I'm thinking about something like Kraft Heinz (KHC) , where a 3% yield really won't help you."

Forget Kraft Heinz, Cramer says.
Forget Kraft Heinz, Cramer says.

Still, the stockpicker said he might buy Procter & Gamble (PG) for his trust if the name pulls back enough.

Utilities Are Too Expensive

"I don't like utilities -- they moved up way too much," Cramer said. For example, he said that while American Electric Power Co. (AEP) has historically been his favorite name in the sector, it's currently trading at a lofty $77 a share or so.

"I cannot countenance buying that stock right there," Cramer said. "It just doesn't make sense to me."

Payment Processors Seem Cheap

On a positive note, Cramer said that some payment-processing firms look like bargains.

"I think that group had been loved, [but] now it's not as loved," he said. "I would take advantage of that."

For instance, Cramer thinks First Data Corp. (FDC) -- which his charitable trust owns -- "has come down way too much. I'm [also] kind interested in Visa pretty soon if it comes down more."

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