Healthcare stocks are returning, says Jim Cramer

CNBC’s Jim Cramer highlighted health stocks on Thursday, which he said helped drive the market higher.

After being discounted under the coronavirus pandemic and “left for dead”, he jumped back, he said.

“I think the backward health supplies are now coming back to life at the expense of cyclical growth, and you need to take one before they all really start,” the ‘Mad Money’ host said.

The comments come after strong economic data helped raise the Dow Jones industrial average above 34,000 for the first time in Thursday’s session. The 30-share index gained 305 points, or 0.9%, to close at 34,035.99, led by a rise in UnitedHealth Group shares.

UnitedHealth, an insurance provider and Dow component, posted a quarterly report that included analyst analysis. Positive action can also be found in GlaxoSmithKline, Eli Lilly, Regeneron Pharmaceuticals and Johnson & Johnson, hampered by its Covid-19 vaccine explosion, Cramer said.

With the exception of Johnson & Johnson, each of these stocks has climbed double digits from their recent lows, returning to the top of the year.

“This group fell so out of favor that it eventually represented an enormous value. It just waited until the signal would move … [and] it happened, “Cramer said. Given how monumental the move was, I bet it’s far from over. “

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

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