Jim Cramer on Danaher: “At These Prices, It’s Clearly Overvalued”

Danaher Corporation (NYSE:DHR) was among the stocks Jim Cramer talked about as he discussed the recent rally in several AI-related stocks. Cramer compared the company’s valuation to its organic growth, as he remarked:

Danaher, once among the most revered companies in the entire market, still trades at 21 times earnings. But at these prices, it’s clearly overvalued because it’s only putting up 4 to 6% organic growth. Thermo Fisher’s trading at less than 20 times earnings, but it has a 1% organic growth rate. Management was guiding for 3 to 4% later.

A stock market graph. Photo by energepic.com

Danaher Corporation (NYSE:DHR) provides instruments, consumables, software, and services used in bioprocessing, life sciences research, and clinical diagnostics. Cramer mentioned the company during the May 11 episode and said:

For instance, Danaher, another one-time excellent company, has seen the stock just get pulverized after not-so-great quarters, or I should say a savage string of not-so-great quarters. The stock of the medical and diagnostic company is down… 27% year to date, and just head shaking, this is Danaher. Those two, of course, aren’t alone. Boston Scientific, Intuitive Surgical, Medtronic, ResMed, Stryker, Zimmer Biomet, they all hit new lows. That’s a remarkable confluence of true ugliness from some pretty darn good companies.

While we acknowledge the risk and potential of DHR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DHR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1