Jim Cramer - Mad MoneyWaters CorpWATBUYFeb 04, 2022

The stock was doing well into early this year when they combined Becton Dickinson's biosciences & diagnostic solutions business last July. Shares plunged, which he didn't understand, but have since turned around, up 45%. They reported a great quarter last month with revenue up 8% and earnings up as well as its full-year forecast.

It will buy part of BDX for $17.5 billion. The market reacted badly, pushing WAT shares by 13.81% which is too much. It was a good deal for BDX, because of the shares received and the debt paid off.

Life sciences suffered post-Covid after rallying during Covid. WAT is a major player. Last Wednesday they reperted a clean top/bottom line beat, but issued a cautious earnings forecast, so the market gave a muted reaction. Likes them, because they have few competitors at at time when the economy is slowing down.

WAT vs. TMO vs. DHR Not performing as well as Thermo Fisher or Danaher. Cash from operations has been flat in the last 4 years, whereas the other two have doubled, which is reflected in the stock price. Market share, operating margins, and pricing power impact the business model. Compare these when assessing competitors in an industry.