Cramer's 'Mad Money' Recap: Yes, Pfizer

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Medicare drug schemes are causing people to buy more prescriptions, Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

Therefore, people should look into buying Pfizer (PFE Quote), he said.

Monday when Humana (HUM Quote) CEO Mike McCallister visited the show, Cramer said he thought that he was the only one who didn't know that Medicare Part D, a drug benefit for the elderly, has caused a bump up in prescriptions.

However, nobody else is looking for this spike either, he said, adding that when there's a big spike for prescription drugs that nobody's looking for, you have to suspect there is money to be made.

Opportunity is knocking, Cramer said. Here you could buy Pharmaceutical HOLDRs (PPH Quote), but if you buy the drug index, you will get the best and worst of the drug stocks, Cramer said.

Instead, do your homework, Cramer said, and you can buy the best drug stocks and make money.

All large drug companies have gigantic businesses for the elderly, but the one with the best risk/reward, Cramer recommended, is Pfizer. Though Pfizer was in the dog house, it has now entered the house of pleasure, he said.

The company, which is stocked full of drugs, has Lipitor for cholesterol and Viagra, the undisputed winner in its space. Pfizer has the right drugs to make money, Cramer said.

Cramer said he's also picking Pfizer because it has a catalyst. The company just booted CEO Hank McKinnell and replaced him with Jeff Kindler.

But the fact that new blood is coming is not the only reason Cramer likes this stock. Pfizer has growth estimates that nobody's counting on, he said.