NEW YORK ( TheStreet) - As the stock market wraps up a record-breaking year, TheStreet's Jim Cramer has selected 12 sectors where he thinks investors should put their money.
Among them is health care, which has seen its share of takeovers this year. Health care stocks are up nearly 25% as measured by the S&P 500 Health Care Index, while the S&P 500 is up 11%. In each of Cramer's 12 sectors, "you can almost throw darts and win with a couple of rare exceptions," he wrote in Here Are 12 Sectors to Bet On on the Real Money Web site.
The "gravitational pull of these sectors is so strong that you can expect some of these stocks within these sectors will be anointed, meaning they will be adopted on every dip and will be 'go to' as if they are wide receivers that will be targeted over and over because they have such obvious support," Cramer wrote.
Health care stocks, specifically, have opportunity, he wrote, adding, "There are so many takeovers in it and, in part, because many investors STILL don't believe the strength can continue."
We've listed Cramer's picks alongside the TheStreet Ratings, TheStreet's proprietary stock rating tool which projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 30 major data points, TheStreet Ratings uses a quantitative approach to rating stocks. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.
Cramer's analysis and that of TheStreet Ratings may differ as Cramer judges for himself the expected value of each company's biotech pipeline without regard to time horizon, while TheStreet Ratings uses consensus estimates for the next 12 months only. In addition, changes in TheStreet Ratings may lag Jim Cramer's analysis, as consensus estimates may take some time to change meaningfully.
Here are his top four picks for the health care industry.
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