Sometimes things get out of whack and the market corrects itself, says Jim Cramer
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer explains that early-year market dislocations can look irrational but often self-correct. He contrasts Constellation Energy and Constellation Brands, arguing CEG has become dangerously expensive while Constellation Brands may have overcorrected at 13 times earnings.
- Cramer says the market can look inconsistent early in the year but tends to rationalize itself.
- He introduces two 'Constellations': Constellation Energy and Constellation Brands.
- Constellation Energy has risen over 175% in two years and trades at 28x earnings; he calls it dangerously expensive and sees no bottom.
- Constellation Brands is down over 40% and faces beer-demand, packaging-tax, immigration, and GLP-1 headwinds.
- Cramer argues Constellation Brands at 13x earnings may have overcorrected and is too cheap.
- He does not recommend a broad index trade despite discussing Dow, S&P 500, and Nasdaq moves.
Ideas
CEG dangerously expensive after huge run.
Constellation Energy is a high-quality clean nuclear power producer benefiting from hyperscaler demand, but after a 175% two-year run it trades at 28 times this year's earnings estimates, which is very pricey for a utility. The stock has already fallen from 353 to 322 this year and Cramer sees no signs of it bottoming, calling it dangerously expensive.
Constellation Brands overcorrected; too cheap at 13x.
Constellation Brands has been one of the worst stocks in the market, down more than 40%, amid rising beer prices, weaker younger-cohort drinking, aging baby boomers, Mexican import packaging taxes, immigration-crackdown pressure on its Hispanic customer base, and GLP-1 weight-loss drugs. But the stock now trades at just 13 times earnings, and Cramer thinks it may have overcorrected; a liquor company is worth more than that, so the valuation is too low.
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This CNBC video, published January 09, 2026, features Jim Cramer discussing CEG, STZ. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Jim Cramer · Tickers: CEG, STZ