Jim Cramer Nailed These 11 Stock Predictions

2. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Holders: 66

Back in 2024, on May 20, a caller asked whether to hold or buy more shares of Abbott Laboratories (NYSE:ABT), amid a pending lawsuit over baby formula. Cramer remained positive on the outlook but advised waiting for a lower entry.

“The outlook is fabulous. There is a lawsuit in July involving formula — its competitor Reckitt Benckiser lost a case. I think that this is not going to be a big deal. But it doesn’t matter — people know what happened with J&J and they’re scared. We’re waiting till at least it gets to par or 100 to be able to buy more. But we believe in the company.”

Abbott Laboratories delivered steady growth with a 28.54% gain, justifying his patient buy-on-dip approach. Abbott Laboratories (NYSE:ABT) is rebounding as its diversified healthcare products and diagnostics tools see renewed investor interest.

Discussing the stock’s valuation, Cramer gave the following analysis in May this year:

“Okay, their forward PE shows that there’s going to be a, pretty much of an earnings explosion. And I think a lot of that’s going to be coming from Libre, which is their diabetes, they have the best diabetes device. It’s cheaper than everybody’s.

By the way, I think pound for pound, it’s better than Dexcom, and Dexcom stock was up very big today. Also, remember, Robert Ford runs Abbott, and he runs it incredibly well. And I also think they’re going to settle these lawsuits or win the lawsuits that have really kept the lid on the stock, and that’s going to happen in 2025.”