Quick Read
-
Cramer believes Oracle carries too much risk for an IRA, and he advises avoiding Diageo and all alcoholic beverage stocks due to a 49% drop over five years.
-
In his outlook for the latter half of 2026, Cramer highlighted banking and pharmaceuticals, noting JNJ’s 55% rise and JPM’s 22% gain in the past year.
-
According to Cramer’s 1-2-3 ranking strategy, he suggests selling stocks that rank third, identifying Oracle and the alcoholic beverage sector as clear examples.
-
Don’t miss out. Analysts who accurately predicted NVIDIA’s rise in 2010 have now listed their top 10 AI stocks. See the complete list for free now.
During a Q&A session on CNBC’s Mad Money Investment Club on July 17th, Jim Cramer shared some straightforward advice for investors.
He stated: Sell Oracle, avoid alcoholic stocks entirely, and lean toward cyclicals, defensive stocks, and select semiconductors as we head into the second half of 2026.
Why Cramer Says He’s Selling Oracle
A member asked, “What should I do with Oracle after holding it for two years?” The stock is currently around 6% lower, and while it’s had gains over the past two years, it only offers a 1.6% dividend yield now. Cramer responded, disregarding the caller’s concerns about their investment: I don’t care when you bought it. It’s about where it’s going, and I see it dropping. I think investing it in an IRA is too risky. You should sell.
Oracle’s fiscal 2026 fourth-quarter report showed cloud infrastructure revenue increased by an impressive 93% year-over-year, while remaining performance obligations jumped 363% to about $638 billion. However, free cash flow was down to -$23.69 billion, with forecasts indicating a need to raise around $40 billion through debt and equity in fiscal 2027. The stock has decreased by 47.64% in the past year and was valued at $126.78 last month.
Don’t wait: Analysts who anticipated NVIDIA’s success back in 2010 have revealed their top 10 AI stocks. See the complete list for free now.
Avoid Alcohol Stocks Like Diageo
On the matter of alcoholic beverages, Cramer expressed: “I won’t touch any sake companies right now. There are many types of spirits: gin, vodka, brown liquors—they’re all struggling. There’s no point in trying to guess when the bottom will hit.”
He pointed to Diageo, which reported only modest net sales growth in the third quarter of fiscal 2026, particularly in North America, where sales are notably weak. The stock has seen a 49.1% decline over the last five years.
Kramer’s Favorite Sectors for the Second Half of 2026
Cramer emphasized several sectors he thinks are promising, notably banking and pharmaceuticals. For instance, JP Morgan (NYSE:JPM) showcased robust Q2 2026 results with solid EPS and impressive revenue growth—up 22.34% over the last year.
Johnson & Johnson (NYSE:JNJ) also performed well, with marginal revenue growth in the first quarter, raising its dividend for the 64th time and projecting an improved adjusted EPS for the fiscal year. Their stock rose 55.49% in the past year.
In travel, Delta Airlines (NYSE:DAL) showed strong gains in the second quarter with double-digit increases in premium income, experiencing a 25.89% rise year to date.
Moving to aerospace and defense, RTX Co., Ltd. (NYSE:RTX) reported significant improvements in free cash flow and an impressive order backlog, enjoying a 31.49% stock increase in the past year.
Lastly, NVIDIA (NASDAQ:NVDA) continues to thrive, boasting over 80% year-over-year revenue growth for the first quarter of 2027 amid strong demand for AI-related products.
Jim Cramer’s Outlook for the End of 2026
Cramer concluded that he views Oracle and alcoholic beverage stocks as ones to sell, while emphasizing that banking, pharmaceuticals, travel, aerospace, and select semiconductor companies present more appealing opportunities in the second half of 2026.
Don’t miss out: Analysts who called NVIDIA’s success back in 2010 have released their top 10 AI stocks. See the complete list for free now.
