Jim Cramer Shares Little Known Potential Catalyst For Abbott Laboratories (ABT)

We recently published Jim Cramer Just Couldn’t Stop Talking About These 13 Stocks. Abbott Laboratories (NYSE:ABT) is one of the stocks Jim Cramer recently discussed.

Abbott Laboratories (NYSE:ABT)’s shares have gained 16.7% year-to-date despite suffering from a major dip in July. The shares sank by 8.5% after the firm’s second-quarter earnings failed to satiate growth-hungry investors. While Abbott Laboratories (NYSE:ABT) beat analyst estimates for earnings and revenue, its decision to keep guidance unchanged was just too much for investors to bear. In his previous comments about the firm, Cramer shared that he was among those who were looking for a guidance raise. This time, he shared what might be a potential catalyst for Abbott Laboratories (NYSE:ABT):

“You know what, my colleague Jeff Marks said this could be good for Abbott. The Binax. Cause it looks like you know if you’re not going to give the COVID vaccine then a lot of people maybe you need the test. So maybe you buy Abbott off the Binax. I don’t know. I think Abbott’s much more of a. . .”

Here’s what Cramer said about Abbott Laboratories (NYSE:ABT) after its earnings:

“Today, in an otherwise positive market, I was discouraged to get a mixed update from Abbott Labs, medical technology company that we’ve long owned for the Charitable Trust… I’d say two decades. When Abbott Labs reported this morning, the… results were perfectly solid. Management tightened their full-year earnings guidance rather than raising it while also taking down their organic sales growth forecast and their operating margin outlook.

A lot of investors, including me, have been hoping they’d raise these numbers, so the stock got clobbered down more than $11 or 8.5%. I thought it might’ve been down $15. That’s what I predicted. It didn’t get that low. As I’ve chronicled many times, this is a stock where we’ve really had to battle over the past several quarters. We’ve kept our faith for the Charitable Trust during some nasty litigation last year. The stock bounced back from that.”

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