CNBC’s Jim Cramer on Friday advised investors to add Danaher to their shopping lists for next week after it reported third-quarter results.
“You’re now getting a chance to buy one of the best-run companies in the world at a big discount. I think you’ve got to take advantage of this pullback [next] Monday morning, because Danaher’s too good to ignore,” he said.
The life sciences and medical technology company beat earnings estimates in the third quarter but narrowed its 2022 bioprocessing revenue growth forecast to account for a decline in contributions from the Covid market.
Despite the beat, the company’s stock fell 5% on Thursday in response to the quarter. Cramer said that this was a mistake, especially when considering that Danaher is an “arms dealer” of the pharma and biotech industry.
“There are very few players in the space and the industry is about as recession-resistant as it gets,” he said.
And while investors might be worried about the decrease in business from the Covid market, the company is refocusing its spending on the much larger non-Covid space, Cramer said. Non-Covid bioprocessing sales grew well over 20%, and the company raised its expected full-year core sales growth forecast to the high-single-digit range.
“The quarter was very, very strong despite what you may have heard,” Cramer said.
Disclaimer: Cramer’s Charitable Trust owns shares of Danaher.