CNBC's Jim Cramer executed significant portfolio adjustments on Tuesday, selling 75 shares of Procter & Gamble at roughly $153.11 and buying 50 shares of Honeywell Aerospace at roughly $238.53. Following these trades, Cramer's Charitable Trust will own 300 shares of PG, decreasing its weighting to about 1.15% from 1.45%, while increasing its Honeywell Aerospace position to 270 shares, raising the weighting to 1.65% from 1.35%. As reported by The Economic Times, Cramer explained that these rotations create dislocations that seem to come out of nowhere, and sometimes those dislocations can give investors incredible opportunities to buy high-quality companies at a discount. "Today we got a bunch of them," Cramer emphasized, highlighting the current market environment as particularly ripe for value opportunities.
Cramer highlighted several consumer-focused stocks as potential opportunities. He pointed to PepsiCo as one such opportunity, noting that the recent fall has given back much of the rally that followed the company's strong earnings last quarter. With PepsiCo set to report results on July 9, Cramer said the pullback could offer investors a better entry point. He also mentioned Starbucks, saying investors are finally getting a chance to buy the stock after its recent decline, with CEO Brian Niccol still working on the company's turnaround. According to Cramer, the fall in the stock has made the risk-reward more attractive. Starbucks is also held by Cramer's Charitable Trust, the portfolio used by the CNBC Investing Club.
Healthcare emerged as the standout performer in Tuesday's market rotation, with the sector bucking the broader downbeat trend. Johnson & Johnson surged 3.6% Tuesday and is up nearly 30% year-to-date, according to Cramer's analysis. He noted that the company has become more focused after spinning off Kenvue, its consumer health business, and is planning to move away from orthopedics, which could make it more attractive as a pure-play pharmaceutical business. Drugmaker Eli Lilly also gained 3% after JPMorgan raised its price target to $1,400 from $1,300 in its second-quarter earnings preview, citing strong GLP-1 sales and international sales of the weight-loss drug Mounjaro. Cramer described this as a "UNH, CVS, Cardinal Health market" - highlighting the sector's best-of-breed companies. Johnson & Johnson is scheduled to report earnings on July 15, with Cramer suggesting the recent weakness could give investors a chance to look at the stock before the results.
Financials have emerged as the best-performing sector so far this month, with Wells Fargo up 6.6% over the past month despite being down 5.3% year-to-date. Cramer noted that the bank is starting to catch up to the pack ahead of earnings next Tuesday, suggesting it could be a "breakout quarter." However, he emphasized that the bank needs to deliver, as "we wouldn't tolerate another disappointment" given misses over the past few quarters. Cramer's other bank holding, Capital One, is down 15% year-to-date but he called it "the envy of the other banks" after its acquisition of Discover Financial, which created one of the largest banking and payment network companies. He added that the stock "should be up, not down" because of the merger.
Cramer has identified Honeywell Aerospace (HONA) as his latest aerospace recommendation, posting his buy call on X (formerly Twitter) on Monday morning, July 7. The stock closed July 6 at $237.70, down 3.82% on the session but was trading slightly higher in premarket following Cramer's recommendation. Honeywell Aerospace only began trading as an independent company on June 29, 2026, after completing its spinoff from the Honeywell conglomerate. Cramer's logic centers on the company's freshly independent status with record backlogs from both Airbus and Boeing, positioning it directly inside the two most important commercial aircraft production ramps in the world. The parent Honeywell reported a backlog approaching $38 billion at the start of 2026, with orders up 7% year over year. Standalone 2026 projections call for adjusted EBITDA of $4.65 billion to $4.75 billion and free cash flow of $1 billion to $1.5 billion in the second half of 2026 alone. By 2030, Honeywell Aerospace is targeting annual earnings of at least $6.5 billion and free cash flow of at least $4 billion.
