Jim Cramer says to buy shares of Danaher on the dip

CNBC’s Jim Cramer on Friday advised investors to add Danaher to their shopping lists for next week after they report third quarter results.

“You are now getting a chance to buy one of the best run companies in the world at a deep discount. I think you need to take advantage of this pullback [next] Monday morning, because Danaher is too good to ignore, he said.

The life sciences and medical technology company beat third-quarter earnings estimates but cut its forecast for 2022 bioprocessing revenue growth to account for a decline in contributions from the Covid market.

Despite the pace, the company̵[ads1]7;s stock fell 5% Thursday in response to the quarter. Cramer said this was a mistake, especially considering that Danaher is an “arms dealer” of the pharma and biotech industries.

“There are very few players in the space and the industry is about as recession-proof as it gets,” he said.

And while investors may be concerned about the slowdown in business from the Covid market, the company is refocusing its spending on the much larger non-Covid space, Cramer said. Non-Covid bioprocessing sales grew well over 20%, and the company raised its full-year forecast for core sales growth to the high single digits.

“The quarter was very, very strong despite what you may have heard,” Cramer said.

Disclaimer: Cramer’s Charitable Trust owns stock in Danaher.