Cramer's Morning Take: Danaher 8/22/23

SPEAKER_1 (0:00)

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Jim Cramer (0:33)

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

This is another one of those days where it all starts strong, looks great, and then we start figuring out who's doing well and who's doing badly. And one of the things that I really want to point out is that Lowe's is doing well, Dix is doing badly. It is a very controversial day, because what we're getting, frankly, are companies that are talking about shrink, stealing, and that is the case of Dix, talking about the consumer being bad, weak, that's the case of Macy's, and then we're talking about the consumer doing well, and that's the case of Marvin Ellison, who I've got tonight for Lowe's. So it's all a conundrum.

Jeff is here now, and I think that what we are faced with, Jeff, is a market where, what have you done for me lately? I mean, you've got Marvin Ellison and Lowe's doing well. You have Ed Stack and Dick's doing poorly, although they have a great software division I want to talk about tonight. So it's case by case, and people aren't used to case by case. People are used to an ETF that takes everything down. That's not been the case today.

Jeff Marks (1:39)

No, no, not the case today, but definitely a mixed read on the retail front, as you pointed out.

Jim Cramer (1:43)

Very much so.

Jeff Marks (1:44)

Another reason why we like the ones more lever to, the ones that create great value for their customers. The value-seeking retailers. TJX, which actually had a beat in raise. You saw a few retailers today. They may have beat, but they only reiterated their full year guidance.

I would put Costco in the same camp too, considering the value that they offer.

Jim Cramer (2:07)

Costco value.

Jeff Marks (2:08)

Exactly.

Jim Cramer (2:09)

Now this going down.

Jeff Marks (2:10)

Both are doing a great job with Shrink as well, managing it, Shrink, the word of the day.

Jim Cramer (2:15)

We've been talking about the idea.

Shrink, by the way, very little Costco, this is a club business. Talking about the idea, Jeff and I, about how the market's oversold, it's minus six. Remember that oscillator, that whole product, you can get at a discount for being members of the club.

But when you're at minus six, you have to take, I don't want to say shots, because that sounds too idle, but you have to take advantage of the decline. So let's say you haven't bought any Costco. I think Costco is a really interesting level of 537 And it can certainly go lower, of course, but you know, we're talking about situations that are relatively immune to this kind of thing, going down with the companies that are not immune.

Jeff Marks (2:53)

No, absolutely. And another thing to keep in mind, look for companies that already reported this earnings season, reported a good number, gave a good outlook, because all that's happened during this market pullback is the market has come down, but these companies just spoke a couple weeks ago, and it's very likely that little has changed during that time period. Now, the company we bought today this morning, small, was Danaher, the company, when they reported, they actually slightly lowered their full-year outlook, but the stock has been able to overcome a slight guidance cut because people are thinking and we're thinking as well that it was the last bad quarter that this bottoming in the life sciences industry is happening. Plus, you have a breakup catalyst later this year as they separate the environmental and applied solutions business.

So, stock down to 50, still down year to date.

Jim Cramer (3:46)

Which is very unusual, Danaher, that we have three quarters that missed.

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SPEAKER_4 (4:04)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company or affiliates, and may have been previously disseminated by Cramer on television, radio, internet, or another medium.