Jim Cramer - Mad Money Abbott Labs ABT-N BUY May 20, 2024

They're turning around, given their immunotherapy pipeline, and their device and testing businesses are strong.

They report Wednesday. Are facing legal challenges that their baby formula kills, but last week the FDA and CDC cleared them. This could turn the tide.

His favourite in this sector. They just delivered a monster quarter.

Expects it to growth topline and bottom line going forward, usually around the 10% range. Sells branded generic drugs to EMs, medical devices, infant nutrition. Diabetes monitoring product has very good growth. Likes that it's diversified, well managed. Yield close to 3%, grown for over 50 consecutive years.

Has excellent fundamentals across four businesses, including best-in-class medical devices renown in cardiology. However, they face lawsuits over their similac formula which studies show is not harmful. It's unfair. It lost a lawsuit last summer and was hit a $495 million penalty. More lawsuits are coming, though the latest decision yesterday went in Abbott's favour. Last month, federal agencies found that the formula is not at fault. Two weeks ago, ABT reported a clean top and bottom line beat and raised their full-year forecast. Shares would have rallied more without the lawsuits.

Pharma companies are always facing the patent wall, needing to spend R&D to innovate new drugs. Very difficult to predict the next blockbuster. He prefers and owns JNJ and ABT, as they're more diversified.

Is one of the stars of the JPMorgan conference. Shares have been growing in a straight line with growth in medical devices and pharmaceuticals.

Is enjoying the rotation out of semis/tech stocks today, up 3.52%. It's been undervalued lately. Has more room to run; he expects the rotation to continue beyond today.

It is one of the more diversified lab equipment manufacturers. He really likes the medical part and sees growth there. Some of their components have slower growth.

He was looking at defensive healthcare names to avoid threat of tariffs. This is one name to consider, reasonable valuation but good growth profile.