By a 6-3 vote, the U.S. Supreme Court’s ruling on Obamacare handed President Obama a victory, and gave investors an opportunity in the healthcare space. The nation’s highest court rejected a challenge to the use of federal subsidies in Obama’s Affordable Care Act, also known as Obamacare. Healthcare stocks surged on the news, and may move higher still, according to Jim Cramer, portfolio manager of Action Alerts PLUS. Jim said hospital stocks in particular stand to benefit. ‘There’s been some suggestions that the hospitals would get hurt by this because the hospitals need more volumes. Now that this is out of the way, HCA (HCA), Tenet Health (THC) can go higher. They’re not expensive stocks and they’re still the ones you want to be in. Universal Health(UHS) moved too much this morning, I would stay away.’ Jim also pointed to some opportunities in insurance stocks. ‘I do think UnitedHealth (UNH) is a very inexpensive stock and people will ascribe some positives to that, I think that stock can be bought. Cigna (CI) is cheapest of the companies that could be acquired, we know there’s a suitor which is Anthem (ANTM), but I don’t want to lump those in with hospitals, which have been big winners, and the volume is going to continue, it’s not going to drop back, it’s perfect.’
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