Cramer says he likes stocks in these 4 industries over tech right now

CNBC’s Jim Cramer on Tuesday offered investors a list of industries they should eye over tech when managing their portfolios.

Here is his list:

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1. Industrials
2. Foods
3. Pharmaceuticals
4. Oils 

“Why rubberneck when you can invest in stocks of companies that have a lot going for them? I think that’s much better than sifting through the wreckage of tech simply because their stocks are down a great deal,” he said.

Tech stocks have been battered this year by persistent inflation, the Federal Reserve’s interest rate increases, Russia’s invasion of Ukraine and Covid lockdowns in China. 

While some tech firms remain profitable and their stock looks like bargains, investors are better off positioning themselves elsewhere, according to Cramer. His advice on Tuesday echoes his urging last month for investors to buy recession-resilient stocks rather than stick with struggling tech companies.

“Their stocks are down so much that people figure, ‘Well, they can’t possibly go any lower.’ But that’s not true. It can always go lower until it gets to zero,” he said.

He added that while it’s true that the stocks have come down enough that owning them isn’t as risky as it would’ve been earlier this year, tech companies need to reevaluate their priorities before their stocks can start to recover.

“They won’t truly be de-risked until management decides to pivot from a growth at all costs mindset … to a profitability at some costs mindset,” Cramer said.