Cramer Says Buy This Non-Economic Stock, Pediatrix Medical (PDX)

July 3, 2008 8:45 AM EDT

Last night, Jim Cramer recommended Pediatrix (NYSE: PDX), as a non-economically sensitive stock that earns its money from the government. Pediatrix will benefit from this year's Medicare spending bill as well. Cramer said Pediatrix is a stock that doesn't need to worry about slowing housing or European interest rates, and just depends on getting paid from the government, and here you have one.

Pediatrix manages the largest network of neonatal specialists, along with 22% of the 1078 Neonatal Intensive Care Units in the country. PDX is very close to its 52-week low, but Cramer said he thinks that is just because investors do not understand Pediatrix' business.

While Pediatrix does not receive direct money from Medicare, it does rely on the Medicare pay rate set for physicians to determine the benchmark it will utilize. With a 1.1% physician pay increase already in this year's Medicare bill, means Pediatrix will likely earn more as well.

Cramer also noted that he likes long-term growth prospects for Pediatrix with more women needing neonatal services as they have children later in life and taking fertility drugs.
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