Jim Cramer on Danaher: “It Has Been a Huge Disappointment”

Danaher Corporation (NYSE:DHR) is one of the stocks Jim Cramer put under the microscope. Cramer discussed it while highlighting the performance of healthcare stocks. He said:

“Some of these healthcare stocks seem played out already to you, perhaps. I mean, Merck was up 7% just today. Charitable holding Danaher also leaped more than 7%. But these stocks have been down so long, they look up to me. I believe they’ve got a lot more upside before they run out of steam. My Charitable Trust owns Danaher, and it has been a huge disappointment. It needs to demonstrate it can capitalize off of all the new drug companies coming public right now, or it will go back to the 180s.”

A man in black suit holding a tablet looks at stock market data on a monitor. Photo by Tima Miroshnichenko on Pexels

Danaher Corporation (NYSE:DHR) develops medical, life sciences, biotechnology, and diagnostic products, including bioprocessing technologies, lab equipment, genomic tools, and clinical instruments. Cramer mentioned the stock during the July 24 episode and said:

“Now, we bought this one in early 2022… I expected the business to stabilize and the stock to make a comeback like that. But for one reason after another, Danaher never really found its footing…

When Danaher reported on Tuesday morning, it almost gave me a heart attack because the stock immediately got clobbered. The company actually delivered a pretty good set of numbers, a healthy revenue beat, steady organic growth, and better than expected margins, all leading up to a 16-cent earnings beat off $1.64 basis. I like that…

… Putting aside China, I think there was far more good news than bad news in this quarter. For example, while all three of Danaher’s core segments reported better than expected results, their highest margin biotechnology segment led the way, that had 8% sales growth. That’s 150 basis points of operating margin expansion and operating income of more than 12%. Wow, that’s very good…

… Here’s the bottom line: It’s been very tough to be a bull on Danaher for the past couple of years, and the company’s still not perfect. But I think we’ve finally reached the tipping point here now that the core bioprocessing business is on the rebound. That’s why we’re sticking around for the Charitable Trust and why you have my blessing to pick up some of the stock right here.”

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.