You may want to start a position in Constellation Brands, says Jim Cramer
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer discusses a market rotation that battered consumer stocks, presenting buying opportunities. He singles out Starbucks, Dutch Bros, Constellation Brands, and TJX as attractive bargains with specific catalysts.
- Cramer notes a broad rotation is hitting stocks like Starbucks, making them cheap.
- Starbucks is seen as a turnaround story under CEO Brian Niccol with the stock on sale.
- Dutch Bros is highlighted as a risky but potential buy after a 5.6% daily drop.
- Constellation Brands is called a steal with a 3% yield and signs of an earnings bottom.
- TJX is favored for trade-down dynamics and ability to acquire cheap inventory from struggling retailers.
- Johnson & Johnson and PepsiCo are mentioned briefly as collateral damage but lack a dedicated thesis.
Ideas
Starbucks on sale amid rotation and turnaround.
The market rotation has put Starbucks stock on sale. CEO Brian Niccol is working on a turnaround, and the stock rarely gets a break despite trading near $100, creating a buying opportunity.
Risk-on buy of Dutch Bros dip.
Dutch Bros dropped 5.6% today, offering a risky but attractive entry for junior growth enthusiasts willing to start a position. He is personally willing to be out there on this one.
Constellation Brands a steal after sell-off.
After a nearly $7 drop to around 130, Constellation Brands offers a 3% yield and appears to be at an earnings bottom, with no concern over World Cup sales because Mexico lost. It's a steal compared to when it was double that price.
Buy TJX on trade-down and inventory opportunity.
TJX benefits from consumer trade-down and can pick up excess inventory from struggling retailers for pennies on the dollar. Management confirmed abundant spare inventory. The stock fell below 140 and finished near 151, down 20 points from its high, making it a highly advantageous buy for a high-quality stock.
