Jim Cramer on GE HealthCare: “Maybe It’s Too Expensive”

GE HealthCare Technologies Inc. (NASDAQ:GEHC) was among the stocks Jim Cramer talked about as he discussed the recent rally in several AI-related stocks. Cramer highlighted the stock’s valuation during the episode, as he said:

GE HealthCare has 3 to 4% organic growth. Sells at 13 times earnings, maybe it’s too expensive. These once premium growth stocks are now selling at ever-growing discounts to the broader market.

A stock market chart. Photo by Arturo A on Pexels

GE HealthCare Technologies Inc. (NASDAQ:GEHC) sells medical equipment, including MRI machines, CT scanners, and ultrasound systems, to hospitals. During the January 16 episode, a caller asked whether they should sell their 83 shares of the stock. In response, Cramer commented:

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?

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