15 Stocks Were Recently Put Under the Microscope By Jim Cramer

10. Novartis AG (NYSE:NVS)

Number of Hedge Fund Holders: 34

Novartis AG (NYSE:NVS) is one of the stocks that was recently put under the microscope by Jim Cramer. During the lightning round, a caller asked if they should buy, sell, or hold the stock. In response, Cramer said, “Oh, come on, Vas [CEO Vasant (Vas) Narasimhan] is a winner… I’m a buyer of Novartis.”

Novartis AG (NYSE:NVS) develops, manufactures, and markets prescription medicines across cardiovascular, immunology, neuroscience, oncology, and hematology areas. Loomis Sayles stated the following regarding Novartis AG (NYSE:NVS) in its Q1 2025 investor letter:

“Novartis AG (NYSE:NVS) is a diversified global healthcare company with market leadership in branded pharmaceuticals across a broad range of treatment areas, including oncology (30% of revenues), immunology (almost 20% of revenues), cardiovascular, renal, and metabolic (almost 20%), and neurology (10%). The company also derives over 20% of revenues from mature branded products in non-core therapy areas. With the October 2023 spinoff of the company’s Sandoz generics and biosimilars division, which followed the 2019 spinoff of ophthalmologic equipment maker Alcon and 2018 divestiture of a consumer health joint venture, the company is now purely focused on innovative medicines, which accounted for about 80% of revenue and 85% of core operating income prior to the Sandoz spinoff. The company generates over 50% of revenue from the Americas, approximately 30% from Europe, and almost 20% from the rest of the world.

A holding in the fund since inception, Novartis reported fundamentally solid quarterly financial results that were better than consensus expectations for both revenue and core earnings per share, and the company provided guidance for 2025 that included mid-to high single-digit revenue growth and faster expected growth in core operating income. We believe Novartis’ narrowed focus on branded innovative medicines, a pipeline increasingly focused on high-value transformative innovations with substantial end markets, and a broad portfolio that continues to have multiple growth drivers, leave the company well positioned for sustained future growth. In addition, we believe the company is seeing the fruits of its shift in research and development (R&D) efforts over the last decade begin to materialize in the form of novel drug launches, such as Pluvicto and Leqvio, discussed below, with many more expected over the coming years…” (Click here to read the full text)