Cramer's Stop Trading! Three Obama Healthcare Stocks (7/7/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Tuesday January 7.

Quest Diagnostics (DGX), Medco Health (MHS), Wellpoint (WLP), Verizon (VZ), AT&T (T)

The heat is off the healthcare sector now that there is more clarity about Obama's proposed reforms. "There’s no overarching attempt to be able to crush profits into nonprofits,” said Cramer, "This group’s going to work for some time.” Cramer's three picks on Obama's healthcare reforms are Quest Diagnostics, Wellpoint and Medco Health; Cramer says the latter is, "The most consistent grower in the universe of stocks I follow." There is nothing to fear from healthcare companies that are actively cutting costs, and these three fit the bill.

Cramer dismissed worries that the Department of Justice might investigate Verizon and AT&T for uncompetitive practices. He thinks this is just another example of playing politics; "There’s been tremendous consolidation,” Cramer said, “but there is still, still price pressure in that industry.”

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