Cramer's Morning Take: Danaher 7/23/24

Jim Cramer (0:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

We've got oil down, and we have interest rates kind of a little bit lower. And that is, by the way, what's still happening. We always forget, when we look at individual stocks, what's still controlling things is the Fed and whether rates are coming down. So we have all these different earnings that are being reported, and I come back to, you get a good backdrop, then you get a market that's going higher.

Jeff Marks (0:29)

Sure, and we've seen earnings come in today, generally better than expected. There are a few misses that we'll get to in the rapid fire section, but there was a nice beat today and a really strong outlook from Danahur in the portfolio as well. That stock is surging higher here, back to the 52-week high.

As the key line in the press release, they say the bioprocessing business sustained positive momentum, and that's key because when it was falling the last couple months, sentiment just got so poor in this group. You had a couple negative data points from peers. There was one last week, a peer in Germany reported a weak number, but I think the results show today why Danahur is just a much better-run company than what's in the group.

Jim Cramer (1:16)

And I think that analysts who have really kind of become lukewarm on Danahur are gonna come out very strong tomorrow, and that's one of the reasons why the stock can be up 18 today, because people realize when the analysts sit down with pen and paper today, they will come out hard tomorrow, as this was once the most loved company, and it's gonna get the love back.

Jeff Marks (1:36)

Sure, and you know what actually surprised me most about the quarter is they bought back stock, and they bought back a ton between 2Q and into July, 19 million shares, and why that's so notable, it's the first time they bought back stock in 10 years. So really, the bread and butter of the Dan and Her Playbook is you buy companies, you apply that Dan and Her business system operating playbook to improve efficiencies, margins, accelerate sales.

But this to me says, yeah, maybe the M&A environment not so great for them, but their stock, they can get a better return on buying their stock today when they can on M&A. And that's just a very bullish signal.

Jim Cramer (2:19)

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