Editor's Note: Jim Cramer's column runs exclusively on RealMoney.com; this is a special free look at his column. For a free trial subscription to RealMoney.com, click here. This article was published Nov. 23 on RealMoney.
Health care stocks are poised for their typical year-end run -- as always. These stocks have a terrific tendency to ramp as other companies come clean in December and say that they can't make their numbers.
But it's not just easy comparisons that drive the group. You also get a huge round of approvals out of the Food and Drug Administration at the end of the year. We just had big ones for
Johnson & Johnson
It happens every year, and I suspect this time it will be just as bountiful. Understand that we are never sure what will be approved, but we know approvals come in spades in December.
This year, also, because of the recession, the earnings of drug and health care companies will shine vs. the cyclical companies that so many portfolio managers are playing ahead of 2002.
My suggestion: It's still not too late to beef up the drug stocks (my faves:
, Johnson & Johnson and Pharmacia; don't touch
, I am worried it will miss the quarter), medical and health care suppliers (my faves:
, and I am looking at
) and HMOs (my faves:
as a premium growth stock and
as a turnaround).
You would sell these stocks if you thought 4% growth was doable in the first quarter. I don't think it is -- which is why I like these stocks best.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. At the time of publication, Cramer was long Pfizer, Merck, Guidant, AmerisourceBergen, UnitedHealth and Aetna. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to