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 biotech. Biotech stocks are up 33% this year, as measured by the Nasdaq Biotechnology Industry 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.
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Biotech stocks specifically have had a "monstrous" year, Cramer wrote. "You really don't want to out-think this. We have senior and junior biotechs that work."
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 Cramer's top five picks for the biotech industry.
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