Cramer warns investors not to group all stocks of the same sector together – ‘No two stocks are truly alike’

CNBC’s Jim Cramer on Wednesday told investors that despite what might be happening in the market, they shouldn’t judge a stock based on its industry peers’ performance.

“These days, it feels like up to 90% of a stock’s performance on a given day comes from its sector, something on down days that feels like a heavy gravitational pull,” he said.

“I want to remind you that no two stocks are truly alike and, more important, the sector analysis everyone lives by these days is often a travesty of a mockery of a sham,” he added.

The “Mad Money” host’s comments come after the Dow Jones Industrial Average rose on Wednesday, while the S&P 500 and the tech-heavy Nasdaq Composite both fell slightly.

The market, which has been roiled by a vicious cycle of sell-offs as investors fear a recession is coming, saw several sectors tumble. Chipmakers took a hit after Bank of America downgraded several semiconductor stocks. Cruise stocks declined after Morgan Stanley made a hefty cut to its price target for Carnival.

Cramer said that there are several stocks that shouldn’t be downgraded due to their competitors’ poor performance, naming Disney, Meta, AMD and Nvidia specifically.

“Look, I’m not guaranteeing the bottom in Disney, or Meta, or AMD or Nvidia,”  he said. “But the bottom line is … stocks are all different.”

Disclosure: Cramer’s Charitable Trust owns shares of Disney, Meta AMD and Nvidia.