Jim Cramer - Mad Money Danaher Corp. DHR-N DON'T BUY Jun 25, 2025

Expensive at 28x PE with tepid revenue growth. They're talking cost cutting, which is encouraging for profits, but it's making up for fundamental weakness.

The CEO is not doing an appropriate job. He wishes he didn't own this. Wants to see the board act.

Diversified diagnostics and bio-processing franchise. Good capital allocators. On the upswing in terms of cyclicality. Under-deployed balance sheet can be utilized accretively. Until recently, valuation was coming down. Defensive healthcare, a more resilient vertical than industrials. More complex treatments of the future benefit a name like this (and TMO). Yield is 0.64%.

Since Covid hit, everything's slowed down. More pressure from the government. Long-term view is that its equipment will still need to be used to develop new drugs. Products needed by universities, governments, hospitals, biotech. Just have to wait for demand to pick up. Lots of opportunity for sales growth, just not at the same pace as before Covid. A buying opportunity.

He never sold it. Is sticking by it. Expects a comeback. Their China business isn't that bad.

Not much of a dividend. Challenges with global revenues. Beat revenue by 3.5%, but bottom line fell 39%. Underperforming both the sector and the S&P 500. Healthcare sector is super-undervalued, and that could change.

Can trade successfully if you watch technicals closely. Rarely meets analysts' expectations. Don't get greedy; when it hits $220, keep an eye on changing momentum.

Loves it. Within tools diagnostics, they boast high growth among its peers. They make the equipment that produces biological drugs. Are exposed to the R&D space, which is seeing less funding due to Washington. The stock took a hit after the Waters-Becton deal, fearing more competition. 80% of revenue is recurring. Medium/long-term this remains a good business. There is a lot of policy noise on pharma, though, from Trump. This and this space needs to see some catalysts, perhaps in the fall, when we see hard numbers on the impact of Washington.

A disappointment for him. It needs to show it can capitalize on all the new drug companies coming public now, or this will slide back to $180s.

Caught up in the "tariff war". Healthcare behemoth. Very good track record with its acquisition strategy. Lots of firepower. Should be part of the workaround solution for non-American companies. Inexpensive, great entry level. Likes healthcare. Yield is 0.60%.