Obama-Proof: Pfizer, Bristol-Myers and Teva

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When President Barack Obama proposed offering health care coverage to all Americans, the industry bristled and investors cringed.

But some drugmakers will gain even if the president's plan erodes profits by lowering prices. Pfizer(PFE Quote), Bristol-Myers Squibb(BMY Quote) and Teva Pharmaceuticals(TEVA Quote) are three of them. Recommended as "buy" by TheStreet.com Ratings, the companies offer products and possess sound businesses that investors can be confident in.

Pfizer: Pfizer is an industry leader that has an impressive line-up of well-known pharmaceuticals, such as the cardiovascular drug Lipitor, with revenue of $2.7 billion in the first quarter, and Celebrex, an arthritis medication. With the addition of Wyeth(WYE Quote), Pfizer will become even bigger and more stable.

Wyeth brings a mix of blockbuster over-the-counter products such as Advil, ChapStick and Centrum, in addition to big-name pharmaceuticals like Enbrel and Effexor, which account for 28% of revenue, helping to diversify Pfizer.

Due to an adjusted beta of 0.73 and a sensible debt-to-equity ratio of 0.14, Pfizer benefits from low volatility and moderate leverage. Explosive gains will be elusive, but stability is a big advantage.

Pfizer's stock has lagged in performance this year, dropping 14%, leading to a price-to-earnings ratio of 7.8, below the industry average of 16.2, suggesting a large undervaluation and a good buying opportunity.

Lastly, Pfizer pays out a robust 4.2% dividend.

Bristol-Myers Squibb: Bristol-Myers boasts a return on equity of 46%, underpinned by products such as Abilify and Plavix, which combined to represent 38% of last year's revenue. That can also be cause for alarm since the company is vulnerable to decreases in sales when patents run out.