CNBC’s Jim Cramer on Thursday highlighted healthcare stocks, a rebounding segment he believes will help lead the market higher.
Health stocks are recovering after being discounted and “left for dead” due to the coronavirus pandemic, he said.
“I think the lagging health stocks are now being brought back to life at the expense of cyclical growth games, and you should grab one before they all really take off.”Bad money“Host said.
The comments come after strong economic data helped carry that out Dow Jones industry average for the first time in session on Thursday over 34,000. The 30-share index gained 305 points, or 0.9%, to close at 34,035.99, led by an advance UnitedHealth Group Shares.
UnitedHealth, an insurer and a Dow component, released a quarterly report that beat analysts’ estimates. Positive action could also be found in GlaxoSmithKline, Eli Lilly, Regeneron Pharmaceuticals and Johnson & JohnsonCramer said this was hampered by the introduction of the Covid-19 vaccine.
With the exception of Johnson & Johnson, each of these stocks has risen double-digit from their recent lows to the start of the year.
“This cohort had fallen so out of favor that it ended up being of tremendous value. It was just waiting for the signal to move … [and] it happened, “said Cramer.” In view of the monumentality of this step, it is certainly far from over. “
Disclosure: Cramer’s charitable foundation owns shares in Eli Lilly.