February 29, 2024

CNBC’s Jim Cramer on Thursday highlighted healthcare stocks, a rebounding segment he believes will help lead the market higher.

Health stocks are recovering after being discounted and “left for dead” due to the coronavirus pandemic, he said.

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

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

UnitedHealth, an insurer and a Dow component, released a quarterly report that beat analysts’ estimates. Positive action could also be seen at GlaxoSmithKline, Eli Lilly, Regeneron Pharmaceuticals and Johnson & Johnson, which have been hampered by the introduction of the Covid-19 vaccine, Cramer said.

With the exception of Johnson & Johnson, each of these stocks has risen double-digit from their recent lows to the start of the year.

“This cohort had fallen so out of favor that it ended up being of tremendous value. It was just waiting for the signal to move … [and] it happened, “said Cramer.” In view of the monumentality of this step, it is certainly far from over. “

Disclosure: Cramer’s charitable foundation owns shares in Eli Lilly.

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