Many investors are worried about the prolonged government shutdown in the U.S.. Despite market uncertainties and instability, according to Jim Cramer of CNBC, these are the stocks you can buy in the market today:
“Merck is exactly the kind of company that investors circle the wagons around” during difficult macroeconomic events like long-lived government shutdowns, Cramer said on “Mad Money” amid a broader market rotation.
“Even though Merck ran up dramatically last year, I think the stock remains way too cheap, and as the rotation plays out, it could get even cheaper, meaning you could get an even better buying opportunity,” he continued. “We’re talking about a best-of-breed drug company here, yet it’s not getting the kind of premium multiple I think it deserves.”
So, even though Cramer expects more selling in the drugmakers’ stocks in the next several days, he urged stock-pickers to consider the bigger picture and, if they’re interested, to scale into Merck’s stock “gradually.”
“Thanks to Keytruda,” Merck’s leading anti-cancer franchise, “Merck is once again a growth pharmaceutical company,” he said. “I’m betting it’ll be years before their key drug faces any meaningful competition, which means you can buy it into weakness here.”
Investors still have time to take advantage of the broad rotation out of “safe” food and drug stocks and into faster-growing stocks like the semiconductor plays, Cramer said Thursday.
For more insights, continue reading HERE.