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

CNBC’s Jim Cramer on Friday advised investors to buy shares in medical diagnostics and healthcare technology company Danaher while it’s down, warning that it will not stay that long.

“Danaher is a fantastic US company with a stock that traded at $ 280 before reporting the amazing quarter yesterday morning. Although the quarter was really good, the stock is now at $ 265,” said the “Mad Money” host.

“You do not just get the neighborhood for free; you get it for less than nothing. Danaher is a gift horse down here. Do not look it in the mouth, just take it. But leave space, as this terrible market creates huge shopping opportunities, but only on the way down, he added.

Danaher reported better-than-expected revenue and earnings in its most recent quarter, assisted by its Covid testing company.

Call Danaher one company that is “fit for the moment,” Cramer blamed the stock’s recent poor performance on investors’ misunderstanding of the company and the market’s general tumultuality.

“While Danaher has been slandered as a Covid winner, the truth is that I think the stock will do much better when we put Covid in the rearview mirror. Accelerate again,” he said.

But “it’s not that Danaher’s test business will disappear completely. Covid is here to stay – it’s becoming an endemic disease that we’ll be stuck with for the foreseeable future. So we’ll need Covid tests in a long time is coming, “he added.

Cramer also highlighted Danaher’s profitability – a trait he has maintained is crucial for a company’s investment – as well as the company’s acquisitions in recent years.

“Thanks to its strong core business, Danaher has been printing money over the last few years, to the point where their relatively clean balance sheet gives them a lot of room to make acquisitions … it’s a complete deal-maker,” he said. .

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

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