The financial reform bill has certainly caused some consternation among the financial stocks. Wall Street always hates uncertainty and the ambiguity of the 2,000 pages of the financial reform bill has caused plenty of it.

Yesterday, the Dow close down 268 points in what Jim Cramer described as a “horrible, stinking bad day” that was reminiscent of “Stalingrad or Verdun.” Well, maybe not quite that bad.

After looking at the carnage of the financial sector there is one stock that Cramer feels offers investors lots of upside.

Cramer describes Citigroup (C: 34.23 0.00%) as a “pitiful giant”. The stock has suffered from a mishandled attempt by the Treasury to sell their stake in Citi. These strong selling pressures have pushed Citi’s stock price down and there’s more still to come.

However, on a technical basis it appears that Citi is oversold. The Street.com technical analyst Tim Collins believes that the current prices provide a good entry point. He predicts that the stock could rise to $4.60 – $5.00 in the short term.

Cramer is even more positive on the fundamentals. He has faith in CEO Vikram Pandit and likes the firm’s mix of domestic and international business. Most importantly, Cramer believes that Citi has little exposure to housing which is once again become a huge problem area.

Cramer set a $12 price target for Citigroup over the long term. He recommends that investors buy Citi at its current levels.

Here is a review of the performance of Jim Cramer’s key stock picks from Friday’s Mad Money show.

Goldman Sachs
Goldman Sachs (GS: 116.15 0.00%) stock gained 0.6% today after Cramer forecasted “pain” for the stock in the near term. Cramer believes the financial giant is a great company, but would steer clear of the stock as long President Obama is targeting the Wall Street firm.

Healthcare stocks
Humana (HUM: 85.15 0.00%) fell 2.8% after Cramer put the healthcare stock, along with United Health Group (UNH: 52.14 0.00%) and RehabCare Group (RHB: 0.00 N/A), on the sell block. Cramer acknowledged that the easy money has already been made in these stocks after the huge rallies off their 2009-lows.

Apple
Apple’s stock jumped 2.7% ahead of their quarterly earnings report. Jim Cramer advised investors to start selling the stock now ahead of Wednesday’s release of their much-anticipated tablet pc.

After the close, Apple’s stock was down slightly despite reported blockbuster earnings with revenues jumping 32% over last year.

Cramer’s Lightning Round stock picks:

• Linn Energy(LINE: 36.43 0.00%) dropped 1.9% – Although Cramer has recommended this stock in the past, he doesn’t recommend buying after the stock’s big rally.

• Huntington Bancshares (HBAN: 6.05 0.00%) gained 2.4% – Cramer advised investors to look at HBAN since the stock is “roaring”.

• Webster Financial (WBS: 23.17 0.00%) jumped 6.6% – Cramer prefers this bank stock as they have few bad loans on their books.

Sears Holdings (SHLD: 48.80 0.00%) gained 5.5% and Lowes (LOW: 26.88 0.00%) jumped 2.4% after Cramer recommend buying both stocks as a way to play the “gasoline rallies”. With consumers spending less money at the pump they have more discretionary income to spend in retailers such as Sears and Lowes. Unfortunately, the same logic didn’t’ seem to carry through to restaurants stocks as YUM Brands fell 6.0% and Darden Restaurants dropped 1.1% after also being recommended. 

No stock was effected more by the “Cramer effect” than Viacom. The stock gained 5.2% after Cramer donned a SpongeBob costume in honor of the cartoon’s 10 year anniversary. While Viacom has had its struggles, Cramer believes that the fact that Viacom is undervalued is a good enough reason to buy. The stock trades at a discount to peers Time Warner (TWX: 38.11 0.00%) and Disney (DIS: 41.27 0.00%). Cramer recommended buying Viacom before SpongeBob rings the opening Bell at the New York Stock Exchange on Thursday morning. 

The “Cramer Effect” also helped lift CSX (CSX: 21.95 0.00%). The stock gained 6.2% after Cramer noted that the railroad operator had recently beaten earnings estimates despite falling revenues. 

Other Cramer bullish stock picks: 

BHP Billiton (BHP: 80.73 0.00%) gained 5.3% – Cramer noted that mineral companies were showing signs of strength.

Goldman Sachs (GS: 116.15 0.00%) jumped 3.7% – Cramer believes Goldman Sachs is likely to earn $30 per share next year, while Wall Street is only expecting earnings of $16 per share.

Chevron (CVX: 106.76 0.00%) increased 2.5% – Cramer considers Chevron to be best-of-breed and prefers investing in CVX over the oil index. With a strong 4.1% dividend yield and 5% production growth for the year, Cramer thinks Chevron’s revised guidance may have lowered the Streets expectations enough to deliver an upside surprise in its next report.

Commscope (CTV: 0.00 N/A) rose 3.7% today after Cramer remarked on his Mad Money show that CTV will be a big beneficiary of wireless buildout in China and India and rated the stock a buy. In addition, Cramer predicts an earnings beat for CommScope because of demand in Asia and improving margins as the price of copper falls. 

Shares of Lincoln National (LNC: 24.39 0.00%) rose 3.8% after Cramer admitted that he is confused as to why Lincoln National is getting “smashed” after it just raised capital. “Once they get the money, they’re out of the woods, so you shouldn’t be selling them!”

Goldman Sachs (GS: 116.15 0.00%) gained 1.3% after Cramer noted that Goldman Sachs currently trades at a very low multiple and is cheap based on earnings. 

Finally, despite pumping Apple (AAPL: 476.68 0.00%) again on his show yesterday, AAPL’s shares fell 2%. Evidently expectations for a rally following Steve Jobs return to work don’t appear to be materializing.