Healthcare stocks are making a comeback, says Jim Cramer

CNBC’s Jim Cramer on Thursday highlighted health stocks, a recovering segment he believes is helping to lead the market higher.

After being discounted and “left for dead” amid the coronavirus pandemic, health supplies are recovering, he said.

“I think the lagging health care stocks are now coming back to life at the expense of cyclical growth, and you have to grab one before they all really take off,” said the host of “Mad Money.”

The comments come after strong economic data helped push the Dow Jones Industrial Average above 34,000 for the first time during Thursday’s session. The 30 stock index gained 305 points, or 0.9%, to close out at 34,035.99, led by a spike in UnitedHealth Group stocks.

UnitedHealth, an insurance company and part of Dow, released a quarterly report that exceeded analyst estimates. Positive action has also been found from GlaxoSmithKline, Eli Lilly, Regeneron Pharmaceuticals and Johnson & Johnson, who have been hindered by the introduction of the Covid-19 vaccine, Cramer said.

With the exception of Johnson & Johnson, all of these stocks are up double digits from their recent lows hitting back to the top of the year.

“This cohort had fallen so out of favor that it finally represented tremendous value. It was just waiting for the signal to move … [and] it happened, “Cramer said.” Given how monumental that move was, I bet it’s far from over. ‘

Disclosure: Cramer’s charity owns shares of Eli Lilly.

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