The rhetoric from Washington since the election last November has been to get rid of the Affordable Care Act -- dubbed Obamacare -- and replace it with a new health care bill. However, that never worked, thanks to the GOP's latest health care plan failing to gain traction.
"They failed at repeal and replace," TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment Friday. So what's the stock to buy off that failure? According to Cramer, it's Centene Corp (CNC) - Get Centene Corporation Report . Shares nearly popped to near 52-week highs in Friday's morning trading session, but have since fallen into slightly negative territory, down about 0.2%.
In the days following the election, Centene fell from about $67 all the way down to about $50. The decline of 25% was quickly erased, though, as Centene is up 70% so far in 2017 and now trading north of $95 per share.
The rally isn't over with, either. In fact, "Centene goes much higher," according to Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.
- Obamacare Costs: Why It's Better to Revise Than Repeal and Replace
- GOP Keeps Pushing on Obamacare Repeal as Path Forward Remains Murky
- Centene Shares Spike on Fidelis Buy
Investors need to "recognize that this is the company that has successfully negotiated Obamacare better than any other company in the world," he explained. Those successful negotiations help explain why the stock price is up so much over the past nine months.
"My hat's off to them," Cramer said. "That's the buy," off the GOP's recent failure at health care reform, "right here, right now," he concluded.
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At the time of publication, Cramer's Action Alerts PLUS had no position in any companies mentioned.