Jim Cramer: Consider starting a position in Constellation Brands amid market rotation

According to CNBC, “Mad Money” host Jim Cramer said Monday that investors should not fear the latest market rotation and argued it is creating buying opportunities in several stocks pulled lower by institutional selling, including Constellation Brands, PepsiCo, Starbucks, TJX Companies and Johnson & Johnson. Cramer said Monday’s action followed last week’s June jobs report, which pointed to a slowdown in hiring from the prior month, prompting some large money managers to reposition portfolios; he added that basket trading tied to economic themes can push quality companies lower even when their businesses have not changed. He said PepsiCo’s pullback has erased much of the rally after its strong earnings report last quarter and called it an appealing entry point ahead of its July 9 results, and he said Starbucks’ recent decline offers a chance to buy as CEO Brian Niccol works on a turnaround. For higher-risk investors, Cramer highlighted Constellation Brands, saying recent earnings suggested its beer business may be stabilizing despite concerns about spirits. He also said he “can’t think of a more advantageous place to buy” TJX, and described Johnson & Johnson as a “pure-play pharma” after spinning off Kenvue a few years ago, with changes he said make it more attractive ahead of its July 15 earnings report.