Allergan (AGN) is the best of the best when compared to its peers, according to TheStreet's Jim Cramer. But its investors might not feel that way with the stock down more than 33% this year.

However, Cramer, the co-manager of the Action Alerts PLUS portfolio, says the stock is a multi-year story.

While Allergan is a great company with good management, Cramer said, the current environment for health care stocks is very bad. Cramer spoke from the floor of the New York Stock Exchange Tuesday.

Bristol-Myers Squibb (BMY) reported a good quarter -- and look at how that stock has fared, Cramer pointed out. The stock is down more than 26% in 2016.

Simply put, drug stocks are out of favor, and the election isn't helping matters. There's pricing pressure and political pressure. Both of these negative catalysts translate to a lower stock price.

For those reasons, Cramer is cautious on Allergan heading into the company's Wednesday morning earnings results.

Analysts expect the company to earn $3.58 per share on $3.69 billion in revenue.

At the time of publication, Cramer's Action Alerts PLUS had a position in AGN. 

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