RealMoney Radio Mailbag: Electronic Arts Appreciation

Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.


What is your take on Electronic Arts (ERTS)?

-- Steve in Arizona

James J. Cramer: While Electronic Arts is an expensive stock at 35 times earnings, it has the best product portfolio in the video-game publishing business.

Even outside of the sports hits like Madden, EA has built a very strong lineup of games and should benefit from the rollout of the XBox 360. Video-game stocks tend to be fairly volatile, but three years out, I believe Electronic Arts will be much higher than it is today.


Jim, what's your favorite play in the health care sector?

-- Carl from Alabama

James J. Cramer: My favorite health care stock remains UnitedHealth ( UNH), which I own for my charitable trust, ActionAlertsPLUS.

The stock is trading at 23 times expected 2005 earnings, but the company should grow earnings at 20% a year, aided by the Medicare Part D legislation and partnerships with Walgreen ( WAG) and CVS ( CVS).

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