Jim Cramer delivered a blunt message to investors during the member Q&A on Friday, July 17th’s episode of CNBC Mad Money Investing Club.
He said: sell Oracle, avoid liquor stocks entirely, and lean into cyclicals, defensives, and select semiconductors for late 2026.
Why Cramer Says Sell Oracle
A member asked what to do with Oracle (NYSE:ORCL | ORCL Price Prediction) after holding it for two years. Oracle has fallen about 6% over the past 2 years, although the stock does pay a 1.6% dividend yield today. Cramer’s answer ignored that the caller might be down on their position: “I don’t care where you bought a stock. I care where it’s going to, and I think that stock is going down. It doesn’t fit in for what I would consider to be an IRA. I think it’s too risky. I think you should sell it.”
Oracle’s Q4 FY2026 filing shows Cloud Infrastructure revenue jumped 93% year over year to $5.79 billion and remaining performance obligations exploded to $638 billion, up 363%. Full-year free cash flow was negative $23.69 billion, against capex of $55.66 billion, with management planning to raise roughly $40 billion in FY2027 through debt and equity. The stock fell 47.64% over the past year and 33.43% in the past month to $126.78.
Avoid Liquor Stocks, Including Diageo
On spirits, Cramer was categorical: “I know this liquor business is cold… I would not touch any liquor company right now. There are a lot of ones, the gins, the vodkas, the browns, they’re all doing terribly. You don’t need to try to call a bottom.”
Even Diageo (NYSE:DEO) fits the warning, with reported net sales rising only modestly in fiscal Q3 2026 while North America, the company’s largest region, weakened materially and US Spirits contracted. Management has flagged North America as its biggest challenge, citing soft market conditions and the need for a more competitive offer. The stock is down 49.1% over the past five years.
Cramer’s Favorite Sectors for Late 2026
Talking about what he does like, Cramer said: “I like the banks. I like the pharmaceuticals… I know it sounds crazy, but I love travel and aerospace. And then I will like tech when the big unwind is over, particularly some of the less speculative semiconductors that I think are really great.”
Banks
JP Morgan (NYSE:JPM), a leading money-center bank delivered a strong Q2 2026, with a large EPS beat, double-digit revenue growth, standout Equity Markets performance, and a sizable new share repurchase authorization. Shares are up 22.34% over the past year.
Pharmaceuticals
Johnson & Johnson (NYSE:JNJ), a diversified healthcare industry leader, grew Q1 revenue at a high-single-digit pace, raised its dividend for a 64th consecutive year, and lifted FY26 adjusted EPS guidance. The stock is up 55.49% over the past year.
Travel
Delta Airlines (NYSE:DAL), a major US carrier, posted a Q2 adjusted EPS beat, with premium revenue up double digits and a 15% dividend increase starting in the September quarter. Delta is up 25.89% year-to-date.
Aerospace and Defense
RTX Corporation (NYSE:RTX), a leading aerospace and defense company, beat on Q1 EPS, grew free cash flow sharply year over year, and ended the quarter with a record multi-hundred-billion-dollar backlog spanning commercial and defense. Shares are up 31.49% over the past year.
Less-Speculative Semiconductors
Nvidia (NASDAQ:NVDA), the world’s dominant AI silicon supplier, reported Q1 FY2027 revenue growth above 80% year over year, with Data Center revenue up sharply and a fresh multi-billion-dollar buyback authorization. Management has described the AI factory buildout as the largest infrastructure expansion in modern history.
Jim Cramer’s End of 2026 Outlook
On Friday, Cramer said he believes Oracle and liquor stocks belong in the sell pile, while banks, pharmaceuticals, travel, aerospace, and select semiconductor companies offer more attractive opportunities heading into late 2026.
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