Jim Cramer on Perrigo Comapny: “This Is a Value Trap”

Perrigo Company plc (NYSE:PRGO) was among Jim Cramer’s stock calls on Mad Money, as he highlighted worthy space players and reviewed several of this year’s IPOs. A caller asked whether the stock’s depressed valuation, ongoing management-led restructuring, and debt-reduction efforts indicate a turnaround opportunity or a value trap. Cramer said:

No, I mean, this is a value trap, I really do think. I mean, there’s just something going on here. I studied it for a very long time. It does not have any growth. I don’t want it.

A stock market graph. Photo by energepic.com

Perrigo Company plc (NYSE:PRGO) provides over-the-counter health and wellness solutions, including respiratory, nutritional, digestive, and skincare products. Meridian Contrarian Fund stated the following regarding Perrigo Company plc (NYSE:PRGO) in its third quarter 2025 investor letter:

Perrigo Company plc (NYSE:PRGO) is the leading in-store brand for consumer wellness and self-care products. The company endured several years of declining earnings due to what we believe was poor capital allocation by its previous management team, which chased growth through acquisitions outside of Perrigo’s core business. Our investment in Perrigo was inspired by a new management team that committed to pursuing realistic, steady growth rates within the core business, and the company delivering improved profitability and returns on capital. The stock underperformed during the quarter as earnings were guided to the low end of the previously given range due to sales and margin headwinds in their recovering infant formula business. While the fundamental difference in the guide down was small, investor patience has worn thin after years of delayed improvement. We continue to hold Perrigo in the portfolio.

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