Cramer's 'Stop Trading!': Health Care Stocks

On Tuesday's "Stop Trading!" segment on CNBC, Jim Cramer turned to health care. "This group is going to work for some time," he said. "This is not a one-day trade. This group is going to be right for a long time."

Cramer said it's a misconception that there's no way to play health care under the Obama administration. "You could say, 'Now, Jim, wait a second. All of these stocks are still in health care, and Obama hates health care,'" Cramer said. "I think what we're discovering is that he hates portions of health care."

According to Cramer, what Obama hates is waste, and Cramer had a few suggestions of health care companies that do not produce waste.

His diagnostics play was Quest Diagnostics(DGX Quote), which he said is "historically cheap." "Diagnostics is something Obama believes in," said Cramer.

He also liked WellPoint(WLP Quote), which he said has the least amount of government exposure to HMOs. He recommended selling Humana(HUM Quote) and using the profit from that sale to get into WellPoint instead.

His third pick was MedcoHealth(MHS Quote), one of TSC Ratings' top 5 fast-growth stocks this week. "This is the most consistent grower of the universal stocks that I follow," Cramer said. "This company is the friend of reform, not the enemy." He said the stock, which closed on Tuesday at $46.68, should be at $65.