8 Stocks on Jim Cramer’s Radar

2. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders: 98

Introducing Danaher Corporation (NYSE:DHR), another one of his Charitable Trust’s holdings, Cramer said:

“Full disclosure, this is a name that we have been battling for a few years now. The position was established in early 2022, which was bad timing because I didn’t appreciate the scale of the inventory glut issue. But we stuck with Danaher because we have tremendous respect for the company. I always believed that once the temporary headwinds cleared, this one would bounce right back. It still has a high price-to-earnings multiple though so it got annihilated today, down five bucks or 2% on the poorly received Fed meeting.”

Cramer highlighted that the stock saw a big surge in July but then struggled with a sharp decline in mid-October, dropping 19% from its August high. Despite this, Cramer sees it as a good buying opportunity. He noted that he is not alone in this outlook, as on December 13, Bank of America raised its rating on Danaher (NYSE:DHR) to Buy from Neutral while maintaining a price target of $290.

The firm noted that the recent decline in the stock has made it a more appealing entry point and believes the shares could outperform in 2025 as the bioprocess recovery gains momentum, driven by “more realistic” buy-side expectations. Cramer noted that the firm expects business to normalize next year, with a significant rebound in China driven by government stimulus efforts, and commented:

“There has been no government stimulus in this sector whatsoever. Now, I agree with that recommendation though, which is why we stuck with Danaher for the Charitable Trust. If like me, you believe it, the healthcare sector’s prime for a comeback next year. Danaher’s a great stock.”

Danaher (NYSE:DHR) designs and manufactures a broad range of products and services across several industries, offering solutions for therapeutic development, clinical diagnostics, and laboratory research. In Q3, it faced a decline in high-growth markets, especially in China, due to weak orders and cautious spending. Management noted that despite China’s stimulus measures, they haven’t sparked a notable uptick in orders.

However, the company saw growth from its pharmaceutical, biopharma, and CDMO customers, with demand improving as they moved past inventory destocking. Danaher (NYSE:DHR) management expects this recovery to continue in the coming quarters.