A sharp sector rotation has knocked down some of the market’s steadiest names, and Jim Cramer told CNBC viewers this week that the dislocations are exactly the kind of setup patient investors should welcome. On the July 6 episode of Mad Money, Cramer framed the pullback this way: “These rotations create dislocations that seem to come out of nowhere. And sometimes those dislocations can give you incredible opportunities to high quality companies at a discount that shouldn’t even exist. And it wouldn’t if it weren’t for the rotation.”
Cramer named three specific dip-buy candidates on the following night’s show.
Walmart: Fuel Fears Fade as the Stock Slides
On the July 7 Mad Money, Cramer said “Walmart’s down nearly 18% from its recent highs. I think you’re getting an incredible buying opportunity here because the stock’s been getting pummeled right as Walmart’s biggest worries have started to fade away.” His thesis centers on gasoline: “Six weeks ago, everybody was terrified that Walmart and many other retailers would be laid to waste in a world where consumers had to spend fortunes at the pump. That world is gone, people.”
Walmart (NYSE:WMT | WMT Price Prediction) trades around $113.19, off 6.17% over the past month against a 52-week high of $135.16. The fundamentals came through in the Q1 FY27 report: revenue of $175.68 billion grew 6.1% year over year, global eCommerce jumped 26%, and Walmart Connect ad revenue rose 44% excluding VIZIO. Management reaffirmed full-year adjusted EPS guidance of $2.75 to $2.85 and authorized a fresh $30 billion buyback in February.
Johnson & Johnson: A Pure-Play Pharma Cramer Says Was Sold by Mistake
Cramer’s July 6 pitch on Johnson & Johnson (NYSE:JNJ): “Johnson & Johnson is now a pure-play pharma business with no consumer exposure. It already spun off its over-the-counter business and it’s parting with Orthopedics. Even though they’re being taken down by mistake, that’s why I think you have to pounce.”
The stock rebounded 14.81% over the past month to around $266.13. Q1 2026 revenue rose 9.91% to $24.062 billion, marking a fourth straight EPS beat. Growth drivers include DARZALEX at $3.964 billion (up 22.5%), TREMFYA at $1.608 billion (up 68.3%), and MedTech Cardiovascular up 13.0%. Management raised full-year adjusted EPS guidance to $11.45 to $11.65 and pushed the quarterly dividend to $1.34, extending a 64-year streak of annual increases. Forward P/E sits at 23.
PepsiCo: A 4% Yield Ahead of Thursday’s Report
On the same July 6 show, Cramer said of PepsiCo (NASDAQ:PEP): “PepsiCo dropped nearly a buck, sinking to a level where it sports a dividend yield north of 4%. I think the rotation has given you a terrific place to start a position ahead of Thursday’s report.”
Well, earnings are now out, and PesiCo shares are down 3.3% to $137.73. After June’s quarterly bump to $1.48, PepsiCo’s 54th consecutive annual raise. For income-focused readers, our team has flagged similar setups in the 10 Dividend Kings to Buy Now and Hold Forever report.
A Selective, Stock-Specific Call
Cramer has been cautious in other market pockets this summer, so these three ideas should be read as targeted, stock-specific dip-buying calls tied to a rotation. They are his opinions delivered on Mad Money and reported here for context, not endorsed as recommendations. Readers should weigh valuation, position sizing, and their own timelines before acting.
The Throughline
The connective thread across Cramer’s three picks is defensive quality with rising cash returns: Walmart compounds retail dominance with high-margin advertising, Johnson & Johnson leans into a pharma pipeline, and PepsiCo defends a yield near 4% while international volumes accelerate. Whether the rotation is truly a gift will show up in the next earnings reports and in how quickly the market rewards fundamentals over sentiment.
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