Jim Cramer names 5 stocks to buy in this market rotation
On July 6, CNBC's Jim Cramer named five stocks—Johnson & Johnson, PepsiCo, Starbucks, Constellation Brands, and TJX—as top buys during a sector rotation that pulled quality names lower alongside broader institutional selling. He called the move collateral damage, not a verdict on the businesses. For investors hunting a jim cramer new stock idea amid shifting flows, the Mad Money host framed the pullback as a discount on durable companies rather than a reason to flee equities.
Key Takeaways
- Cramer highlighted J&J, PepsiCo, Starbucks, Constellation Brands, and TJX as unfair casualties of indiscriminate sector rotation selling on Monday, July 6.
- He argued dislocations from institutional portfolio shifts can create entry points ahead of upcoming earnings dates.
- Separately, Cramer called Micron a secular growth story tied to data-center memory demand—not a typical cyclical chip trade.
- Cramer warned quarter-start rotations often last only a few days and cautioned against chasing short-lived rebounds in software and food stocks.
Why Is Jim Cramer Buying During This Market Rotation?
Cramer told CNBC viewers on Monday, July 6, that investors should not fear the latest market rotation. Instead, he sees it as a chance to buy strong companies swept lower by broad institutional selling.
"These rotations create dislocations that seem to come out of nowhere," he said. "And sometimes those dislocations can give you incredible opportunities to buy high-quality companies at a discount." On that session, he added, "Today we got a bunch of them."
Monday's action also showed AI winners rebounding while healthcare names that had been performing well—including Johnson & Johnson—faced pressure. Cramer described the five stocks he highlighted as collateral damage from indiscriminate sector rotation selling.
Which Five Stocks Did Cramer Highlight on July 6?
Johnson & Johnson: Cramer said J&J is now a "pure-play pharma" company after spinning off Kenvue and is planning a move away from orthopedics. He called it more attractive ahead of its July 15 earnings report.
PepsiCo: The recent pullback erased much of the rally that followed its strong prior-quarter earnings, creating an appealing entry ahead of results due July 9.
Starbucks: Cramer argued investors are getting a chance to buy after the stock's recent decline as CEO Brian Niccol continues a turnaround effort. His Charitable Trust owns the shares.
Constellation Brands: For investors willing to take more risk, Cramer pointed to Constellation. Recent earnings, he said, suggested its beer business may be stabilizing despite continued concerns around spirits.
TJX Companies: Cramer said he "can't think of a more advantageous place to buy" TJX. A weaker consumer tends to benefit off-price retailers as shoppers trade down, while excess inventory at traditional retailers gives TJX more discounted merchandise.
"The stocks of J&J, Pepsico, Starbucks, Constellation Brands, and TJX all took it on the chin today," Cramer said. "I think this is a great place to do some buying."
What Role Does Micron Play in Cramer's Broader Rotation Playbook?
Cramer's July 6 list sits alongside rotation advice he offered earlier in the week. In commentary tied to Wednesday's quarter-start reversal, he also discussed Micron Technology.
Cramer said Micron has "become a secular growth story, not a cyclical story," citing a data-center-induced memory shortage and multi-year pricing visibility he said the company had not achieved before. CEO Sanjay Mehrotra appeared on Mad Money around that period.
On that earlier session, he highlighted Meta, AMD, Corning, Applied Materials, and Lam Research as AI infrastructure names where pullbacks could offer a second chance after a strong year.
How Should Investors Approach Short-Lived Sector Swings?
Cramer has cautioned that rotations at the start of a new quarter are common but typically do not last beyond a couple of days. His July 1 guidance urged investors to sell lagging positions at a premium and rotate into winners at a discount—without chasing every rebound.
He warned that gains in software names such as Salesforce and ServiceNow, plus General Mills and Nike, may prove temporary. His Charitable Trust sold Nike after another muted earnings report.
For ongoing market-move coverage, see our Fintech & Crypto Alerts hub. The full July 6 breakdown is on CNBC.