Jim Cramer is Talking About These 14 Stocks Before Earnings

8. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Holders: 69

During Mad Money’s episode, Cramer discussed Abbott Laboratories’ (NYSE:ABT) ongoing litigation and the authorities’ evidence regarding the allegations that can potentially help the company and stock going forward.

“Abbott Labs is marred by litigation, too, this time for a specialty baby formula that plaintiffs claim causes grave harm or even death for their infants. But last week, the FDA, NIH, and CDC came out and they said they found no linkage, no conclusive evidence that Abbott’s formula causes the illness. Abbott lost the case not that long ago for a huge amount of money. It’s litigating another one now in the same venue.

I think it could lose that one, too. But the FDA, NIH, and CDC comments could potentially turn the tide in Abbott’s favor going forward, which would be worth a great deal to this $116 stock.”

Abbott Laboratories (NYSE:ABT) is engaged in discovering, developing, manufacturing, and selling healthcare products. In recent years, the company’s FreeStyle Libre franchise, which includes continuous glucose monitoring (CGM) systems, has emerged as a significant growth engine for the company.

The systems assist individuals with diabetes in effectively tracking their blood glucose levels. The company is heavily invested in innovation, which is evident in its recent introduction of new CGM options, including the Libre Rio, designed for over-the-counter use, and the Lingo system, which targets individuals who wish to monitor their glucose levels for non-diabetic health purposes.

Sales of the FreeStyle Libre products have been exceptional, contributing to Abbott Laboratories’ (NYSE:ABT) overall revenue growth. In the second quarter, the FreeStyle Libre segment reported sales of $1.6 billion, which is an impressive organic growth rate of 20.4% compared to the same quarter in the previous year.

The company has established itself as the leader in the CGM market, providing solutions to approximately 6 million patients worldwide. Management has expressed ambitions to expand the CGM portfolio significantly, with plans to achieve annual sales of $10 billion by 2028 through the introduction of Lingo and Libre Rio.