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Cramer: 3 Obama-Blessed Health-Care Picks

President Obama’s potential health-care reforms won’t hurt the sector as much as Wall Street had expected, Cramer said Tuesday, and certain companies might even thrive under this administration.

Now that we know “there’s no overarching attempt to be able to crush profits into nonprofits,” the Mad Money host said during Stop Trading!, “this group’s going to work for some time.”

Cramer recommended Quest Diagnostics, WellPoint and MedcoHealth Solutions, calling MHS “the most consistent grower in the universe of stocks that I follow.”

Medco “should be at $65,” Cramer said. The stock was selling for about $47 in Tuesday trading.

While many investors at one point thought Obama’s reforms would sweep across all of health care, Cramer said the president’s focus on waste in the system. Companies that eliminate that waste, such as DGX, WLP and MHS, should be favored.

“I think they’re going to get the multiple premium that’s been lacking this whole time,” Cramer said of his recommendations.

Cramer also responded to news that the Department of Justice’s antitrust division was looking into telecom companies, specifically AT&T and Verizon Communications, saying the DOJ was just playing politics. He waved off the notion that the sector was uncompetitive.

“There’s been tremendous consolidation,” Cramer admitted, “but there is still, still price pressure in that industry.”

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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DGX
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T
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VZ
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WLP
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