Jim Cramer on Danaher: “This Stock Has Been Such a Disappointment for Me”

Danaher Corporation (NYSE:DHR) is one of the 11 stocks Jim Cramer put under the microscope recently. Highlighting the company’s history of good acquisitions and strength during uncertain times, a caller asked about the company. In response, Cramer said:

“I am horrified about what’s happening at Danaher. Everything you said is true, but the CEO, Rainer Blair, I mean, what is he doing? I mean, the guy has done nothing. This stock has been such a disappointment for me that I just have to stand, I mean, I would get on this desk right now if I were younger. I would drum up, I would scream, and I would say, Danaher, make changes now. But instead, I just said that. I think that was pretty emphatic.”

A healthcare professional in a lab coat holding a microscope and looking at a slide under the lens.

Danaher (NYSE:DHR) develops and sells products and services used in medical, scientific, and industrial applications, including technologies for bioprocessing, diagnostics, lab automation, genomic research, and clinical testing. Andvari Associates stated the following regarding Danaher Corporation (NYSE:DHR) in its Q1 2025 investor letter:

“For the handful of companies in Andvari portfolios that do make physical goods, they all share a mitigating factor: they all have above average pricing power. The source of their pricing power stems from selling products that are critical to the end user and yet are a small proportion of the customers’ total costs. They also often benefit from high switching costs. Danaher Corporation (NYSE:DHR), Mettler-Toledo, Zoetis, and IDEXX fall into this camp, as well as TransDigm.

More specifically about Danaher, their customers design its equipment and consumables into pharma and biologic production lines. If a research lab has made the significant investment to standardize on Danaher equipment, it must continue to buy the appropriate consumables and receive regular maintenance services from Danaher. Thus, if a lab needs to grow, there is little chance a lab would stop buying from Danaher. If a pharmaceutical or biologic manufacturer needs to grow, there is virtually no chance they will switch to similar equipment unaffected by tariffs. It is just too costly and risky to be recertified by the FDA or its European equivalent, the EMA. Danaher can raise prices on its customers given the value provided by its products and the switching costs involved.”

While we acknowledge the potential of DHR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.