CNBC’s Jim Cramer on Tuesday offered investors a list of 10 companies that he believes are rising to the top as tech stocks collapse.
“It’s the revenge of the old guard right now, right here. All sorts of boring, conventional companies are taking back the market while the digitizers and disruptors are being burned,” he said.
Here is his list:
- Johnson & Johnson
- Eli Lilly
- Deere & Co.
Cramer also warned that many investors refuse to embrace the “new reality” of the market’s distance for tech stocks. He attributed the collapse of tech stocks largely to the plethora of competition in the industry.
“Microsoft‘s Azure goes up against Amazon Web Serviceswhich goes up against Google Cloud. netflix now competes with half a dozen streaming services,” he said.
He added that the companies he mentioned are the opposite of tech firms struggling to differentiate themselves from industry peers: “Companies that don’t have much competition, or at least the competition’s so muted that it can’t disrupt the status quo.”
Disclaimer: Cramer’s Charitable Trust owns shares of Amazon, Alphabet, Johnson & Johnson, Eli Lilly, Honeywell, Microsoft and Starbucks.