10 Stocks That Have Jim Cramer’s Attention

4. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Investors: 69

Jim Cramer addressed concerns about Abbott Laboratories (NYSE:ABT) when asked by a viewer. He acknowledged the ongoing lawsuits, noting that there is one more expected to conclude in September, which will be in the same jurisdiction as a previous case where Abbott Laboratories (NYSE:ABT) faced a large verdict. Cramer anticipated that Abbott Laboratories (NYSE:ABT) might lose this upcoming lawsuit as well, but he still views Abbott positively because it is a strong company.

“Okay, I got the whole lawsuit thing down. We’ve got one more lawsuit that’s done in September. It’s going to be in the same jurisdiction as the bad one where they got the very big verdict. I think that verdict is going to be brought down. I think they’ll lose the next ones too, but we’re holding on to it for the trust. Why? Because Abbott’s a great company.

In the end, these are product liability suits—they are not mass tort actions like J&J. I think we’ll come out ahead of the game. They’ve got four great product lines that are selling fabulously. The market is still too overbought, people. We got too hopeful, so now we might need to take a brief respite. There’s nothing wrong with that—maybe little buyers’ remorse.”

Abbott Laboratories (NYSE:ABT)’s latest earnings report showed a 10.2% revenue increase, thanks to strong performance in diagnostics and medical devices. Abbott Laboratories (NYSE:ABT) also exceeded expectations for earnings per share (EPS), demonstrating effective cost management and operational efficiency. A major highlight is the launch of the AVEIR™ DR dual-chamber leadless pacemaker in Canada, which is set to enhance Abbott Laboratories (NYSE:ABT)’s position in the cardiac care market.

Additionally, the continued strong demand for Abbott Laboratories (NYSE:ABT)’s FreeStyle Libre system supports growth in its diabetes care segment. Abbott Laboratories (NYSE:ABT)’s solid financial health is backed by a promising pipeline of new products and reliable dividend payments, setting it up for sustained growth. Analysts are confident in Abbott Laboratories (NYSE:ABT)’s future, with a recent price target upgrade to $143 from Barclays adding to the positive sentiment.

Aristotle Atlantic Core Equity Strategy stated the following regarding Abbott Laboratories (NYSE:ABT) in its Q2 2024 investor letter:

“We sold Abbott Laboratories (NYSE:ABT) given the full valuation and the complexity of its combined businesses. While we like the company’s continuous glucose monitoring business FreeStyle Libre and its aggregate medical device business, we are less excited about the prospects for its nutritional business and established pharmaceuticals business. Recent news of a large jury award at an infant formula competitor has us concerned that the overhang of this litigation could be an ongoing negative for Abbott for some time.”