GE HealthCare Technologies Inc. (NASDAQ:GEHC) is one of the stocks Jim Cramer recently looked at. Noting that they own 83 shares of GEHC, a caller asked if they should sell their position. In response, Cramer said:
Okay, I worked for GE, so I got, I’m not allowed to own stock. I want to make that point, but I got the same thing because I had worked for them before when they… paid me with stock. I took a hard look at GE Healthcare and decided that it didn’t have anywhere near the things that were going for GE Vernova and GE Aerospace. And I think you should sell the stock. I just don’t think it’s what you want to own. If you want to own a medical device, you want to own Medtronic, okay… or Abbott. But Abbott reports next week, so why don’t you wait and see how they go?
Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels
GE HealthCare Technologies Inc. (NASDAQ:GEHC) sells medical equipment, including MRI machines, CT scanners, and ultrasound systems, to hospitals. Cooper Investors Global Equities Fund stated the following regarding GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its third quarter 2025 investor letter:
GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a US based medical device company which was added to the portfolio in late 2023. The company’s primary products are large, sophisticated imaging machines (ultrasounds, X-rays, CT scanners etc.). GEHC was spun out of GE in early 2023, setting the business up to benefit from a classic “focus dividend” – a dedicated management team in charge of capital allocation and strategy now able to drive value creation from a group of assets that had not been optimised within a large organisation like GE.
Early progress was solid, particularly around improvement in operating margin. However, the external operating environment, particularly in China, has been difficult. GEHC’s products are large systems and tend to be somewhat discretionary capital expenditures. The Chinese government has withheld stimulus from hospital budgets, leaving little scope for these sorts of capital expenditures. This risk underlines our preference for businesses providing niche products and services. Additionally, GEHC has been caught in the cross fire of trade and tariff policy between China and the US as the company both imports components and sells systems to China. Given these uncertainties and our ability to find attractive opportunities elsewhere (including in healthcare) we exited our GEHC investment in April. We remain on the lookout for attractive spin-off opportunities within our areas of focus.
While we acknowledge the risk and potential of GEHC 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 GEHC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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