9 Stocks on Jim Cramer’s Radar

3. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Holders: 63

Commenting on Abbott Laboratories’ (NYSE:ABT) ongoing litigation, Cramer remarked that the company will win the cases.

“I still can’t believe that Abbott Labs, perhaps the most diversified healthcare company in the world with some of the greatest growth franchises, has a series of lawsuits hanging over its head, crimping its price-to-earnings-multiple. I think Abbott will win these baby formula cases. Yet, who wants that overhang, right? Certainly not Wall Street. So what does this stock do? It languishes. Who knows how quickly things can change though.”

Abbott Laboratories (NYSE:ABT) is a global healthcare company that focuses on discovering, developing, manufacturing, and selling a wide range of healthcare products. The company has been facing legal challenges related to its infant formula, with over a thousand claims alleging that the product causes necrotizing enterocolitis, a severe intestinal condition.

In July, Abbott Laboratories (NYSE:ABT) was required to pay $495 million in damages after losing the first trial brought by a plaintiff. However, the company received some relief in November 2024 when the jury in its second trial ruled in its favor, finding Abbott not liable in that case. Following this, Cramer said:

“Several analysts wrote about the ruling overnight, and the overall consensus is that this outcome strengthens Abbott’s position in future NEC cases and also puts Abbott in a much better position for a possible settlement for the remaining claims.”