Buy Danaher ‘gift horse’ while it’s cheaper, but leave room for other stocks, Kramer says

CNBC’s Jim Cramer on Friday advised investors to buy shares of medical diagnostics and medical technology company Danaher while they are falling, warning that it won’t last long.

“Danaher is a large US company that traded at $280 prior to yesterday’s report on this fantastic quarter. Even though the quarter was really good, the stock is now worth $265,” the Mad Money host said.

“You don’t just get a quarter for free, you get it for less than nothing. Danaher is a gift horse here. Don’t look him in the mouth, just take him. The market creates huge buying opportunities, but only on the way down,” he added.

Danaher reported higher-than-expected earnings and earnings in the latest quarter, helped by its Covid testing division.

Challenge Danaher a company that “is right for this moment,” Cramer blamed the stock’s recent poor performance on investor misperceptions of the company and general market turmoil.

“While Danaher has been maligned as a Covid winner, the truth is that I think the stock will rise a lot better if we put Covid in the rearview mirror… Also, once Danaher has completed peak Covid testing, its earnings growth should pick up again.” , – he said.

However, “Danaher’s testing business will not disappear completely. Covid is not going anywhere – it is becoming an endemic disease that we will face for the foreseeable future. will come,” he added.

Cramer also highlighted Danaher’s profitability – a characteristic he believes is critical to the firm’s investment appeal – as well as the company’s acquisitions in recent years.

“Thanks to its strong core business, Danaher has been printing money for the last few years, to the point where their relatively clean balance sheet gives them plenty of opportunity for takeovers … it’s a consummate dealmaker,” he said.

Disclosure: Cramer’s Charitable Trust holds shares in Danaher.

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