Jim Cramer: Buy the Dip on These 3 Defensive Stocks

Jim Cramer, host of CNBC's Mad Money, said the recent pullback in some leading defensive stocks presents a buying opportunity for patient investors. On the July 6 episode, Cramer described the moves as "dislocations that create opportunities that seem scary but are actually healthy." The stocks he highlighted are: Johnson & Johnson (JNJ), Walmart (WMT), and PepsiCo (PEP).

Change in Recommendation

Cramer did not formally change his rating, but he emphasized that all three stocks remain buyable at current levels after the dip. He believes the correction is temporary and not the start of a downtrend.

Analyst's Reasoning

Cramer believes sector rotations create "dislocations" that drive down prices of fundamentally strong stocks unjustifiably. For him, this is the moment long-term investors should take advantage of, especially in stocks with solid fundamentals like JNJ, WMT, and PEP.

Context

The three stocks belong to the consumer defensive and healthcare sectors, which tend to be stable during volatile periods. Cramer did not mention other analysts, but the market recently saw a sell-off in these stocks in favor of growth and technology names.

What to Make of It

Cramer's recommendation reflects his view that the correction in defensive stocks is temporary, and long-term investors may find an opportunity to buy at discounted prices. However, the final decision rests with the investor based on their goals and risk tolerance.