Cramer’s 10 Hottest Momentum Stocks
Alexion Pharmaceuticals (ALXN)
Cramer also added Alexion Pharmaceuticals to his list of hottest momentum stocks.
The biotech firm makes Soliris, which treats paroxysmal nocturnal hemoglobinuria — a disorder that can lead to anemia, fatigue, pain and difficulty in breathing. In turn, Cramer said Soliris could bring in around $2 billion in sales around the world.
Soliris is also approved to treat atypical hemolytic uremic syndrome — a rare genetic disorder that damages vital organs. Cramer said it's also being studied as a treatment for three other diseases, which means it could potentially bring in more than a $5.4 billion in peak sales.
"If that's not a terrific long-term growth trajectory, I don't know what is, " Cramer said, adding that the company also has a healthy balance sheet and strong management team.
Alexion is expensive, though, Cramer said. It trades at 42 times next year's earnings and sells for 27 times 2015 earnings estimates, he noted. Considering its 38 percent long-term growth rate, though, he is betting hedge fund managers will be willing to pay up for this high growth stock.
Gilead Sciences (GILD)
Finally, Cramer added Gilead Sciences to his list of hot momentum stocks.
Cramer said Gilead is "the top player" in the HIV market. U.S. health regulators approved its four-drug combination pill, Stribild, on August 27.
Gilead is also developing a hepatitis C drug, which is a multi-billion market, Cramer said. If Gilead's drug is approved by regulators, Cramer thinks it will be a "game changer."
Like Alexion, Gilead boasts a strong management team and clean balance sheet, Cramer said.
Being as it trades at 15.5 times next year's earnings with a 15.6 percent growth rate, he thinks it's worth a look.
Read on for Cramer's Earnings Preview for Next Week
—Reuters contributed to this report