Squawk on the Street

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

Jim and Jeff discuss the smart plays by this life sciences stock. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake CNBC Investing Club Disclaimer

Duration:: 4m
Broadcast on:: 23 Jul 2024
Audio Format:: mp3

CNBC Investing Club Disclaimer

Hey Fidelity, what's it cost to invest with the Fidelity app? Start with as little as $1 with no account fees or trade commissions on US stocks and ETFs. Hmm, that's music to my ears. I can only talk. Investing involves risk, including risk of loss. Zero account fees apply to retail brokerage accounts only. Sell or assessment fee not included. A limited number of ETFs are subject to a transaction-based service fee of $100. See full list at Fidelity.com/commissions. Fidelity brokerage services LLC member NYSE SIPC. Imagine earning a degree that prepares you with real skills for the real world. Capella University's programs teach skills relevant to your career, so you can apply what you learn right away. Learn how Capella can make a difference in your life at Capella.edu. Hey, it's Kramer, and this is my morning take on the market from today's CBC Investing Club morning meeting. We've got oil down and we have interest rates, you know, 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 hard. 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 Dannerher 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 following the last couple months, sentiment just got so poor in this group. We 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 Dannerher is just a much better run company than what's in the group. And I think that analysts who have really kind of become lukewarm on Dannerher are going to come out very strong tomorrow. And that's one of the reasons why the stock can be at 18 today, because people realize when the analysts sit down with pen and paper today, they will come out hard for tomorrow as this was once most loved company, and it's going to get the love back. Sure, and 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. Really, the bread and butter of the Dannerher playbook is you buy companies, you apply that Dannerher 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. Start your day with my outlook on the market every morning. Visit cbc.com/morningtake to become a CNBC Investing Club member at a special rate today. All opinions expressed by Jim Kramer on this podcast and in connection with the CNBC Investing Club are solely Kramer'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 Kramer on television, radio, internet, or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Kramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment, or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Kramer. Do the full CNBC Investing Club disclaimer, please visit cnbc.com/investingclubdisclaimer. Imagine earning a degree that prepares you with real skills for the real world. Capella University's programs teach skills relevant to your career so you can apply what you learn right away. Learn how Capella can make a difference in your life at Capella.edu. Thank you.