Jim Cramer - Mad MoneyAbbott LabsABTDON'T BUYJul 18, 2022

Yes, buy. Almost always they report and the reaction is negative at first, then it recovers. BTW, they had an excellent quarter.

They report Wednesday. Usually, shares climb after the report, then someone finds fault with a single line item, then shares fall. Buy on the dip the next day.

Likes healthcare in general, a larger weight for him. Chart's performing pretty decently relative to the S&P 500. Could give nice returns going forward. 

It's fallen so far and pays a good dividend. 

Medical devices, generics sold to EMs, nutrition. Lots of money during pandemic, money redeployed into new products. Attractive entry point. Yield is 2%, dividend increased every year.

It is a diversified global health care company with four operating divisions.  Sales dropped dramatically after benefiting during Covid but the basic business is doing well with all divisions growing organically. Weight loss patients are using their drugs to monitor glucose. It has had 51 years of dividend increases.             Buy 19  Hold 7  Sell 0

Has owned this many years. She likes healthcare because of aging demographics. They made a lot of cash during Covid and have used that cash for M&A and R&D. Pays a nice 2.5% dividend. Has an established track record of raising their dividend annually. Trades at a reasonable PE. Lags healthcare, but still likes ABT. 

They beat their quarter due to their medical devices business

It is a diversified medical device company with a large diagnostic business. It has made several acquisitions giving it a very diversified platform and is executing well in the cardio-vascular and diabetes fields.     Buy 20  Hold 7  Sell 1

Great company with long history of being shareholder friendly.
Dividend paid for ~100 years.
Excellent management team.

Defensive. Very strong growth platform. Diagnostic business is right-sizing now, but organic growth of other businesses is double digits. Valuation is a bit more expensive at 23x earnings, but free cashflow yield is about 4%. 

Instead of innovation, they tend to acquire and enhance, which has been a knock against them. Big wins in cardiac portfolio and FreeStyle Libre glucose monitoring. Businesses are right in the sweet spot. Yield is 1.83%.

Reported an amazing quarter today, but the headlines reported a ho-hum beat. Shares lagged but eventually finished $8 higher today.

They made the Covid testing kits which generated $20 billion in revenues, so shares got ahead of itself. The market has ignored any such companies since then, but these earnings will eventually work their way up again. ABT has given guidance ex-Covid tests, meaning double-digit organic growth. This is a long-time core holding. They're in medtech and medical procedures are ramping up (a tailwind). Pays a constant and long-growing dividend now around 2.5%. She likes healthcare as a play on the aging population.

Still owns shares in the company.
Believes healthcare a good defensive name.
Target price of $110 per share.
Good performance in the past for the portfolio.
Averaged 16% growth the past 5 years.
Good company for the long term investor.