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Cramer's lighting round: I like Danaher over Philips
  + stars: | 2022-12-12 | by ( Krystal Hur | ) www.cnbc.com   time to read: 1 min
Loading chart...Novo Nordisk A/S : "Other than appreciation, I can not tell you a reason to ring the register." Loading chart...Koninklijke Philips NV : "That's just not a well-enough run company. We own Danaher for the Charitable Trust, and that's the best-run company in the industry." Loading chart...Icahn Enterprises LP : "I don't really know what they own, so it's kind of like a black box. Disclaimer: Cramer's Charitable Trust owns shares of Danaher.
Hector Retamal | Afp | Getty ImagesBEIJING — As mainland China relaxes many of its stringent Covid controls, analysts point out the country is far from a quick return to a pre-pandemic situation. Mainland China's daily Covid infections, mostly asymptomatic, surged to a record high above 40,000 in late November. Looking ahead, it's pretty clear that China's Covid policy is about to cross a turning point, said Bruce Pang, chief economist and head of research for Greater China at JLL. That means there may be a surge in Covid infections, and China's policy will never go back, Pang said. Goldman Sachs analysts expect China's reopening — defined as a shift away from lockdowns — to come in the second quarter of 2023, according to a separate report on Wednesday.
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. Buy and hold Estee Lauder China on Wednesday announced significant rollbacks of its stringent zero-Covid policy. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.
We plan to update the Investing Club with some new additions in the coming days. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. The Dow Jones opened low this morning continuing its downward trend dipping more than 400 points as the stock market closed on Monday.
Mutual funds are on track to enjoy their best year since 2007, thanks to their winning stock picks and big cash piles during a tumultuous year, according to Goldman Sachs. Fifty-six percent of large-cap mutual funds have outperformed their respective benchmarks this year, the highest hit rate of outperformance in 15 years, the Wall Street firm said. In the average year since 2007, only 36% of large-cap mutual funds have beaten the market, the bank said. A high allocation to cash provided a tailwind to returns for mutual funds when the market was in turmoil this year, Goldman said. Health-care names UnitedHealth , Danaher and Cigna were also popular among mutual funds.
We are talking about stocks that offer defensive growth and do even better if the economy slows down. (DHR) Even Linde (LIN) has some defensive growth attributes, but the stock just had a huge move and we are looking for a little more of a pullback. Our preference is still with stocks that offer defensive growth. We understand buying defensive growth today means you aren't catching the bottom, but bottom fishing is often called an expensive hobby for a reason. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .
Global stocks slumped Monday on growing concerns about intensifying protests across China over the communist government's strict Covid policies. Apple (AAPL) — Revenue from China : 17.7% (China is the iPhone maker's second-largest market, lagging just the U.S. at 37.5% of sales.) Disney (DIS) — Revenue from China: 4.8% Devon Energy (DVN) — Revenue from China: 0% Estee Lauder (EL) — Revenue from China: 29.7% (China is the cosmetic giant's largest sales market, followed by the U.S. at 19.8%, per FactSet.) Ford Motor (F) — Revenue from China: 4.6% Alphabet (GOOGL) — Revenue from China: 3.8% Halliburton (HAL) — Revenue from China: 1.6% Honeywell International (HON) — Revenue from China: 4.2% Humana (HUM) — Revenue from China: 0% Johnson & Johnson (JNJ) — Revenue from China: 3.1% Eli Lilly (LLY) — Revenue from China: 5.7% Linde (LIN) — Revenue from China: 8.1% Meta Platforms (META): Revenue from China: 2.6% Morgan Stanley (MS) — Revenue from China: 2.6% Microsoft (MSFT) — Revenue from China: 12.4% Nvidia (NVDA) — Revenue from China: 25.8% — keep in mind: Nvidia's revenue is not attributed to the country in which the consumer buys a product that contains one of the company's semiconductors. Procter & Gamble (PG) — Revenue from China: 13.7% (China is P & G's second-largest sales market, with the U.S. accounting for 45.5% of revenue).
We think the stock has been hurt by a recent update to the company's reserve quantity. While we're big fans of the company's recent corporate governance cleanup , and we expect some near-term selling pressure associated with those efforts. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will 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 trust's portfolio.
At the Investing Club, we generally try to keep our portfolio to around 30 stocks, give or take a few. In light of Thursday's "Monthly Meeting," we wanted to identify what we consider our 10 core holdings of the 32. We may consider a stock a core holding today but that could change three months from now. Management sees its post-separation core business growing revenues at a high single-digit clip and earnings-per-share increasing in the double digits. The stock provides a stellar dividend yield of nearly 3.5%, and the bank has plenty of excess capital to repurchase stock quarter after quarter, while other banks have paused their buybacks.
Loading chart...Uber Technologies Inc : "Uber is a stock that you have to own for a while. It's going to be the last man standing, and that's why I like Uber." Loading chart...Wingstop Inc : "I think it's a very good situation. Loading chart...Fortive Corp : "I happen to think that this was a very good spin on both sides. Disclaimer: Cramer's Charitable Trust owns shares of Danaher.
What's more, Third Point added to its bet on Disney (DIS), owning 1.4 million shares as of Sept. 30, up 40% compared with its position on June 30. That valued the position at roughly $700,000 as of Sept. 30, which is quite small for a multi-billion dollar investment firm like Trian. In August, the firm had reported owning 14.34 million shares as of June 30. They are current as of the reporting date, which for this latest round of disclosures was Sept. 30. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Cisco Systems (CSCO): It reports next week and we think it should deliver a decent quarter as it converts its backlog into revenue. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will 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 trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. Buying health stocks DHR as a China reopening play Tech cutting costs 1. As a result, we believe that right now is a great opportunity to buy health-care stocks on the dip, and recommend Johnson & Johnson (JNJ). THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.
Many operate in areas like filtration and desalination, testing and analytics or smart water networks that can help use water more efficiently. It also invests in water solutions companies like Danaher even if the share of their revenue from water-related businesses is below the 30% threshold the fund typically requires. Water metering also is important for conservation efforts, and companies in this space include Xylem , Badger Meter and Roper . As a pure-play water company, he expects it to take advantage of several industry trends. In the water quality space, Evoqua Water Technologies is a name RBC likes.
I do prefer something that gives you that dividend because you know in the Investing Club, we bought Coterra. But Antero is very inexpensive, and I'm not going to say anything bad about it." Loading chart...Tesla : "Tesla has got the worst chart I've ever seen, and that's what's driving things. People are very worried that [CEO Elon Musk] has to sell a lot of Tesla in order to be able to pay whatever he has to pay for Twitter. I say that Tesla is not cheap, but I'm not going to let the chart determine the fact that I think it's a decent situation."
Club holding J ohnson & Johnson (JNJ) buys Abiomed (ABMD), premier heart pumping company, in a deal valued at $16.6 billion. J & J is paying a hefty premium: $380-per-share upfront, plus extra $35-per-share if certain milestones are met. J & J juiced growth ahead of its separation into two companies: one, pharma and the other, consumer brands. This will raise the growth rate of the MedTech portion of new J & J company. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) very good: $516 million versus $470 million expected.
Here's a rundown of the price target changes we recently made in Jim Cramer's Charitable Trust, the portfolio we use for the CNBC Investing Club. However, we cut our price target to $140 per share from $160, acknowledging headwinds due to rising interest rates and lower earnings estimates. We lowered our price target for the Google parent to $130 per share from $160. Microsoft (MSFT): Despite our longer-term positive view, we reduced our price target to $300 per share from $375. We said Tuesday evening that Microsoft's fiscal second-quarter guidance will likely lead to downward earnings and price target revisions from analysts on Wall Street.
NEW YORK, Oct 25 (Reuters Breakingviews) - For Larry Culp, it’s not the journey but the destination. If all goes perfectly, it could be enough to salvage Culp’s legacy. Orders plummeted 43% year-on-year and revenue declined 15% as demand in the power division, which focuses on more traditional sources, rose. In healthcare, both orders and revenue were up just slightly in the first nine months of the year. If it succeeded in juicing up Vernova’s revenue, it could be game-changing for Culp’s legacy too.
Mizuho doesn't like it either, cuts price target to $180 from $225 ... worried about expenses. Barclays cuts price targets on almost all of the chip makers, including Nvidia (NVDA), Qualcomm (QCOM) and Skyworks (SWKS). Amazing: American Express (AXP) price target trimmed to $128 from $130 at Citi. Wells Fargo cuts to $170 from $180 but keeps buy rating. Generac (GNRC) — Wells Fargo takes this down to $175 from $285.
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. Stocks rally Earnings move Club names Sticking with DHR 1. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.
Stocks rallied this week as earnings season ramped up and is so far off to a better-than-expected start. With 20% of the S & P 500 having reported financials so far, sales results have thus far been 1.4% above expectations while earnings results are 5.4% above expectations, in aggregate. That inverse correlation between bond yields and stocks was powerful enough to trump positive earnings reports. Looking back On the earnings front, we got results from Johnson & Johnson (JNJ), Procter & Gamble (PG), and Danaher (DHR). As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Barbell strategy The other way to think about diversification — and one we used heavily during this year's choppy market — is the barbell portfolio strategy. And if inflation persists but also economic activity picks up, you better own energy stocks. That also brings more demand into the oil market, so expect oil prices and the energy stocks tied to it to benefit. But using correlations and the barbell method to create a diverse mix of holdings can help you stay invested in market. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.
Jim Cramer says to buy shares of Danaher on the dip
  + stars: | 2022-10-21 | by ( Krystal Hur | ) www.cnbc.com   time to read: +1 min
CNBC's Jim Cramer on Friday advised investors to add Danaher to their shopping lists for next week after it reported third-quarter results. "You're now getting a chance to buy one of the best-run companies in the world at a big discount. Cramer said that this was a mistake, especially when considering that Danaher is an "arms dealer" of the pharma and biotech industry. And while investors might be worried about the decrease in business from the Covid market, the company is refocusing its spending on the much larger non-Covid space, Cramer said. Non-Covid bioprocessing sales grew well over 20%, and the company raised its expected full-year core sales growth forecast to the high-single-digit range.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCramer says the market got it wrong on Danaher's third quarter resultsCramer explained why investors shouldn't have sold off shares of Danaher after the company reported earnings this week.
Tesla and Truss, 5% and 150
  + stars: | 2022-10-20 | by ( ) www.reuters.com   time to read: +4 min
A Tesla model 3 car is seen in their showroom in Singapore October 22, 2021. read more The latest European tech sector earnings on Thursday were downbeat, too. Bank of England Deputy Governor Ben Broadbent said the BoE would respond to changes in Truss's tax and spending policies. read moreKey developments that should provide more direction to U.S. markets later on Thursday:* European Union summit in Brussels* U.S. Oct Philadelphia business index. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
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