Market Overview

Cramer: Here's Why Centene Is A Buy Amid Amazon's Health Care Push

Cramer: Here's Why Centene Is A Buy Amid Amazon's Health Care Push
Related CNC
The 6 Most Inexpensive Growth Stocks Right Now
Jim Cramer Gives His Opinion On Centene, Pilgrim's Pride And Danaher

One of the best ways investors can gain exposure to Jeff Bezos' new health care joint venture isn't through, Inc. (NASDAQ: AMZN)'s stock, CNBC's Jim Cramer said during his daily "Mad Money" show on Tuesday. It also isn't through Amazon's partners in the not-for-profit company, JPMorgan Chase & Co. (NYSE: JPM) and Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B). Rather, it is through Centene Corp (NYSE: CNC), Cramer said. 

What You Need To Know

Bringing together Amazon's Bezos with JPMorgan's Jamie Dimon and Berkshire's Warren Buffett will create a new entity that is "very hard to compete with," especially when considering the not-for-profit nature of the business, Cramer said. The combined might of health care lobbyists is no match against "the most important man in finance, the most important man in retail and the best investor alive," he said. 

Why It's Important

So why is it that Centene can survive in a radically different health care environment? Simply put, Centene is among the few companies in the space which have "survived every onslaught imaginable," Cramer said. But the company is also an expert at providing clients with high-quality care at the lowest possible cost while also making shareholders a "fortune," he said. 

"You need a road warrior with a stock that you'll want to load up on into weakness if Amazon talks about this effort on its Thursday night conference call, or the nonprofit comes up with a name or a chief executive," Cramer said.

What's Next?

Investors are always encouraged to avoid buying any stock in a "blast zone on the first day of a sell-off," but those who "can't resist" should buy Centene, Cramer said. 

Related Links:

Mark Cuban Thinks Amazon, Berkshire, JPMorgan Collab Could Pressure Congress To Act

3 Likely Health Care Disruptors In 2018

Photo by Tulane Public Relations via Wikimedia. 

Posted-In: Jamie Dimon Jeff Bezos Mad Money Warren Buffett Jim CramerHealth Care Media General Best of Benzinga


Related Articles (AMZN + BRK.A)

View Comments and Join the Discussion!