Jim Cramer says these are the 5 stocks to buy during this market rotation

CNBC's Jim Cramer said Monday that investors shouldn't fear the latest market rotation. Instead, he thinks it's creating buying opportunities in several high-quality stocks that have been pulled lower by institutional selling.

"If you can spy a rotation and figure out what the theme might be, you can identify some incredible bargain stocks," the " Mad Money " host said. Monday's action followed last week's June jobs report, which pointed to a slowdown in hiring from the prior month. Cramer said that prompted some large money managers to reposition their portfolios.

Because many institutional investors trade baskets of stocks tied to a particular economic theme, he said, quality companies can get swept lower even when nothing about their business has changed. "These rotations create dislocations that seem to come out of nowhere. And sometimes those dislocations can give you incredible opportunities to buy high-quality companies at a discount," he said. "Today we got a bunch of them."

Cramer pointed to PepsiCo, saying the recent pullback has erased much of the rally that followed its strong earnings report last quarter and created an appealing entry point ahead of the company's July 9 results. He made a similar case for Starbucks, arguing investors are finally getting an opportunity to buy the stock after...