CNBC’s Jim Cramer told investors Thursday that a new group of market leaders is emerging amid the slump in tech stocks.
“The market is finally in a Fed-mandated slowdown mode, where the recession-resistant stocks of profitable companies that tend to be quite generous to their shareholders work,” he said.
Here is Cramer’s list of industries that fit these requirements:
- Fossil fuels
- Health care
- Food and drink
The “Mad Money” host’s comments come after a tough earnings season for Big Tech. Amazon reported weaker-than-expected third-quarter earnings and revenue and issued a disappointing fourth-quarter sales forecast on Thursday.
Alphabet missed third-quarter revenue and profit expectations on Tuesday, and Microsoft issued a weak guidance that sent its stock tumbling. Meta Platforms missed on third quarter earnings after the close on Wednesday.
However, owning one high-tech stock is worthwhile, according to Cramer.
Apple beat fourth-quarter earnings and revenue expectations on Thursday after the bell, though it fell short on iPhone services and sales.
Cramer praised its technology, adding that the company is much more in tune with what customers want than the rest of Big Tech, which makes its stock investable. “I always say, own Apple, don’t trade it,” he said.
Disclaimer: The Cramer Charitable Trust owns Alphabet, Amazon, Microsoft, Meta and Apple shares.