We buy 25 shares of Danaher for about $229 each. After trading on Monday, Jim Cramer's Charitable Trust will own 550 DHR shares, increasing its weighting to around 3.6% from 3.4%. The healthcare sector has been the market's big loser because the election. If the SPDR Health Care Sector Fund, commonly known as XLV, trades lower on Monday, it could be the sixth consecutive negative session. The group is facing a significant wave of uncertainty after President-elect Donald Trump named Robert F. Kennedy Jr., a vaccine skeptic and critic of obesity drugs, as his secretary on the Department of Health and Human Services. There's nothing the market hates greater than uncertainty, which is why stocks can fall so sharply when political opinion is unclear. But uncertainty may create opportunities. We never wish to downplay risk – but at a certain level, a stock will probably be pricing in too many potential changes that will have consequences which are too severe. If what's happening in real life seems to be higher than first feared, nibbling on quality healthcare stocks at these prices could prove to be a bargain. We're not buying heavily here because the uncertainty overhang could proceed for a while, but a few of these stocks are oversold. That's why we're turning to some healthcare stocks which have come under heavy pressure in recent weeks. Since the election, shares of Danaher have fallen from $250 to $230, while shares of Eli Lilly have fallen from $806 to $720. DHR YTD Mountain Danaher YTD Danaher reported a better-than-expected quarter with a return to growth in its bioprocessing business. Bioprocessing is the usage of cell components to provide various products, including targeted therapies corresponding to vaccines. Danaher has received many orders from vaccine manufacturers in the course of the Covid-19 crisis. One of the explanations Danaher has come under pressure after RFK Jr.'s election is concerns about funding for the National Institutes of Health, the country's national health agency and a part of HHS. But as Leerink analysts estimated in a research note on Monday, lower than 1% of Danaher's revenue comes from NIH funding. The other side of Danaher's risk is that pharmaceutical corporations limit their research and development as a result of regulatory changes. That's something to observe out for going forward, but we expect Danaher stock trading at about 27 times 2025 earnings estimates reflects a few of that risk. Regardless, we can be buyers of 5 shares of Eli Lilly at roughly $718 each if we weren’t prohibited from trading. The five stocks represent half of what we sold in early September, when the stock was trading at around $960. LLY YTD-Mountain Eli Lilly YTD Eli Lilly shares fell from $903 to $846 after a disappointing third-quarter report wherein destocking of its fast-selling GLP-1 drugs led the corporate to lower estimates missed and lowered the forecast for the complete 12 months. We were concerned about Eli Lilly's post-quarter announcements, but were encouraged in the times that followed when management reiterated to the analyst community that the miss was purely as a result of destocking and was not based on fundamentals or underlying demand. But RFK Jr.'s possible appointment has created quite a lot of uncertainty for Eli Lilly and pharmaceutical stocks as a complete. Last week we highlighted RFK Jr.'s criticism of obesity drugs, along with his two foremost issues being pricing and his view that changes in diets and food systems are the higher solution to combat high obesity rates. Certainly pricing could turn out to be a much bigger issue in the longer term, however the science and the drug's suitability for treating obesity and other conditions are beyond query. The latest correction at Eli Lilly has shares trading barely above 30 times the FactSet consensus estimate for 2025 adjusted earnings per share of $22.52. If you stay up for 2026, Lilly shares are trading at about 24x. Although these metrics represent a premium in comparison with other drug stocks, we imagine they’re favorable given the corporate's top-line growth, which can proceed as GLP-1 supply capability keeps pace with demand. Also note that Eli Lilly won’t face any major patent cliff or IRA pricing pressures over the rest of the last decade. (Jim Cramer's Charitable Trust is Long DHR, LLY. See a full list of stocks here.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation's portfolio. If Jim discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE INVESTING CLUB INFORMATION SET FORTH ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. THERE ARE NO fiduciary duty or duty IN RECEIVING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
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