Cramer said that Alexion's primary drug, Soliris, is the gift that keeps on giving. It currently treats ultra-rare blood conditions to the tune of $1.5 billion in sales, but is also in testing to treat numerous other conditions which could add another $2.5 billion in sales. Shares of Alexion are down 19 points from their highs after a disappointing quarter in October and the company receiving an FDA warning letter last week.
Cramer said he's not worried about the quarter because the analysts clearly got ahead of themselves, and the warning letter simply means the company will need to refine how it manufactures Soliris a little further. Trading at just 28 times earnings with a 33% growth rate, Cramer said that Alexion remains a bargain.
Then there's BioMarin, a company with a $7.7 billion market cap but no earnings. Cramer said this company makes enzyme replacement therapies to treat a host of rare genetic diseases. Like Alexion, it has a robust pipeline of new drugs and new indications for its existing stable. Shares of BioMarin are just off their highs and Cramer said he remains a buyer of this biotech, too.
Investors looking for this quarter's top performers might want to take a look at last quarter's top performers, said Cramer, who ran through the top 10 stocks from the S&P 500.Cramer said Netflix (NFLX) tops the list and is likely to have an encore performance this quarter as its original content and other media deals continue to make it must-have entertainment. Cramer said the next three winners from last quarter -- Best Buy (BBY), Hewlett-Packard (HPQ) and H&R Block (HRB) -- aren't likely to do well this quarter as they've run out of gas. He was more upbeat on Micron Technology (MU), however, because consolidation has made it one of only three DRAM memory suppliers, down from seven just two years ago. In the health care group, Cramer said Celgene (CELG) and Tenet Healthcare (THC) both remain favorites. Marathon Petroleum (MRO) and Avon Products (AVP) are both inexpensive. Finally, there's grocer Safeway (SWY), a stock that was up 45% last quarter as that company continues to make a comeback against Whole Foods (WFM). At 11 times earnings, Cramer said, Safeway is a steal.