Jim Cramer says the market rotation is punishing last year's winners and reviving beaten-down stocks

Market Rotation - Investors are witnessing a classic market phenomenon characterized by a violent rotation where previous winners become sources of cash and previous losers regain favor [1][2] - Such rotations can appear chaotic but are often driven by valuation extremes correcting towards equilibrium, creating new investment opportunities [2] Constellation Energy and Constellation Brands - Constellation Energy has surged approximately 185% over the past two years due to increased enthusiasm for nuclear energy, leading to a valuation that may be excessively high [3] - In contrast, Constellation Brands has faced challenges from rising costs, tariffs, and changing consumer habits, resulting in a stock that may be undervalued despite its strong global franchise in beer, wine, and spirits [4] Retail Sector Dynamics - Walmart was previously favored for assisting inflation-weary consumers, while Costco lagged due to internal changes and weaker membership data [5] - Recently, funds have shifted from last year's leaders like Walmart to laggards such as Costco, which has seen a rebound following stronger-than-expected sales [5] Technology Sector Trends - Stocks that dominated portfolios in 2025 are being trimmed to finance new positions, with Amazon emerging as the best performer among the Magnificent Seven this year, while Nvidia has struggled despite positive commentary [6]