On Friday, CNBC’s Jim Cramer advised investors to add Danaher to their shopping lists for next week after releasing third quarter results.
“Now you have the chance to buy one of the best managed companies in the world at a deep discount. I think you have to take advantage of this hindsight [next] Monday morning, because Danaher is too good to ignore,” he said.
The life sciences and medtech company beat third-quarter earnings estimates but cut its 2022 bioprocessing revenue growth forecast to account for lower Covid market contributions.
Despite the pace, shares of the company fell 5% on Thursday in response to the quarter. Cramer said that was a mistake, especially considering that Danaher is an “arms dealer” in the pharmaceutical and biotech industry.
“There are very few players in the space and the industry is about as recession proof as it gets,” he said.
And while investors might worry about declining Covid market activity, the company is refocusing spending on the much larger non-Covid space, Cramer said. Sales of non-Covid bioprocesses grew more than 20% and the company raised its full-year baseline sales growth forecast to the upper single digit range.
“The quarterback was very, very strong despite what you may have heard,” Cramer said.
Disclaimer: Cramer’s Charitable Trust owns shares of Danaher.