Cramer's 'Mad Money' Recap: A Breakout for Healthcare Stocks (Final)

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NEW YORK (TheStreet) -- With President Obama's agenda stumbling and his popularity waning, Jim Cramer told viewers of his "Mad Money" TV show Thursday that it's now safe to buy the companies that were once in Obama's crosshairs.

Cramer unveiled a compelling chart that overlaid Obama's disapproval rating with that of the S&P 500 Index to illustrate his point. The two lines ran in perfect lock-step, with the S&P rising as Obama's popularity stumbled.

He said with all of the president's major initiatives, like "card check" forced arbitration for unions, cap and trade for utilities, and healthcare reforms, are running into road blocks, Cramer said it's safe for investors to start buying into these affected sectors.

Cramer advised investors keep a diversified portfolio, with 20% in gold as a hedge against chaos, another 20% in international stocks, and a third 20% in health care, a sector which Cramer said is ready to surge higher.

Cramer said with government-run health care seemingly off the table, the healthcare stocks will be a classic "multiple expansion" story, with investors now willing to pay more for these companies' earnings now that they know those earnings are safe.

Wellpoint (WLP Quote) remained Cramer's favorite healthcare name. He said this stock, which trades at just eight times earnings, should fetch 13 times earnings. He said the company is well-capitalized and is buying back stock to help bolster its share price.

Cramer also gave the nod to the speculative Triple-S Management (GTS Quote), a company that's raised guidance twice so far this year. He also said Express Scripts (ESRX Quote), a stock which he owns for his charitable trust, Action Alerts PLUS, should also fare well in this environment.

Cramer said if investors are willing to pay historical multiples for these names, they could see a 35% gain in the share price of Wellpoint, while Triple-S could pop 57%.