Jim Cramer is optimistic about Danaher's recovery as the life sciences sector revives.
Life Sciences Sector Recovery: Life sciences stocks, including Danaher, are rebounding, with Agilent Technologies leading the way after a strong quarterly performance and a shift towards U.S. manufacturing.
Market Optimism for Danaher: Analysts from Morgan Stanley have initiated coverage of Danaher with a buy-equivalent rating, citing a refined business model and a positive outlook for growth through 2026.
Stock Performance and Investor Sentiment: Danaher's stock has risen 30% from its April lows, with recent guidance boosting investor confidence, although it has struggled since its peak in September 2021.
Investment Strategy: Jim Cramer’s Charitable Trust has sold some Danaher shares to manage portfolio risk, while maintaining a positive long-term outlook with a price target of $240.
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- Earnings Growth: Revvity reported adjusted earnings of $1.70 per share for Q4 2025, a 19.7% year-over-year increase that surpassed the consensus estimate of $1.55, indicating robust profitability and competitive strength.
- Sales Increase: The company achieved sales of $772.06 million, up 6% year-over-year with 4% organic growth, exceeding the market expectation of $761.29 million, reflecting sustained demand for its products in the market.
- Life Sciences Segment Performance: The Life Sciences segment generated $382 million in revenue, a 2% increase, although academic and government demand declined, the growth from pharma and biotech partially offset this, showcasing the segment's resilience.
- Future Guidance: Revvity forecasts adjusted earnings for fiscal 2026 to be between $5.35 and $5.45 per share, with sales projected at $2.96 billion to $2.99 billion, reflecting a year-over-year growth of 4%-5%, indicating the company's confidence and strategic planning for future market conditions.
- Divergent Tech Performance: Meta Platforms saw its stock rise nearly 9% after a Wednesday earnings report that exceeded expectations, while Microsoft dropped over 8% due to disappointing cloud business results, indicating a split in market sentiment that could influence future investment strategies.
- Starbucks Stock Volatility: Despite showcasing CEO Brian Niccol's turnaround plan during Wednesday's earnings and Thursday's Investor Day, Starbucks shares fell over 6%, reflecting market concerns about its long-term growth potential, which may impact investor confidence.
- Software Sector Slammed: Salesforce and ServiceNow dropped 7% and 10%, respectively, amid a broader selloff in the software sector, suggesting that the market is compressing valuations for SaaS companies, potentially leading investors to reassess their portfolios.
- Fed Policy Impact: The Federal Reserve's decision to hold interest rates steady on Wednesday, coupled with Trump's nomination of Kevin Warsh to succeed Powell, elicited little market reaction; however, gold and silver prices plummeted due to concerns over future Fed independence, highlighting the potential implications of policy changes.
- Chipmaker Strength: ASML reported record Q4 bookings of €13.2 billion, significantly exceeding the consensus of €6.85 billion, which boosted chipmakers and AI infrastructure stocks, enhancing market confidence in AI spending sustainability.
- Fed Policy Unchanged: The FOMC maintained the interest rate at 3.50%-3.75% as expected, with Chair Powell indicating strong economic performance without signaling imminent rate cuts, keeping market focus on future policy directions.
- Dollar and Gold Fluctuations: The dollar index rebounded after hitting a nearly four-year low, while President Trump's comments on dollar weakness pushed gold prices up over 3% to a new all-time high, reflecting increased demand for safe-haven assets.
- Economic Data Expectations: Initial jobless claims are expected to rise by 5,000 to 205,000 this week, and Q3 nonfarm productivity is anticipated to remain at 4.9%, indicating ongoing economic growth and potential market volatility.
- ASML Record Orders: ASML Holding NV reported Q4 bookings of €13.2 billion, significantly exceeding the consensus of €6.85 billion, indicating robust demand for advanced semiconductor manufacturing and reinforcing its leadership in the chip-making sector.
- Mixed Stock Performance: While the S&P 500 index reached a new all-time high and the Nasdaq 100 hit a three-month peak, market sentiment was tempered by the Federal Reserve's decision to keep interest rates steady, reflecting investor uncertainty regarding future economic policies.
- Interest Rate Policy Impact: The Fed's choice to maintain the benchmark rate between 3.5% and 3.75% ends a series of three consecutive rate cuts aimed at protecting the labor market, which may exert short-term negative pressure on the stock market.
- Market Focus: This week, the market will closely monitor new tariff news and the prospects for a continued resolution to fund the government, with initial jobless claims expected to rise by 5,000 to 205,000, highlighting the fragility of economic recovery.
- Fed Policy Statement: The Federal Reserve held interest rates steady at this week's meeting, indicating an improving economy with the jobless rate showing signs of stabilization while inflation remains somewhat elevated, providing a basis for future policy adjustments.
- Earnings Report Dynamics: Despite Danaher's solid earnings report, its stock dropped, raising questions about whether to hold, while Starbucks' quarterly results indicated that CEO Brian Niccol's brand revival strategy is effective, leading to a stock price increase.
- Market Focus: Meta and Microsoft's earnings reports will be the center of investor attention, particularly regarding Meta's capital expenditures and advancements in large language models, as well as Microsoft Azure's growth prospects.
- Investment Club Trading Strategy: As a subscriber to the CNBC Investing Club, Jim Cramer waits 45 minutes after sending a trade alert before executing trades, ensuring a 72-hour cooling-off period for stocks discussed on CNBC to mitigate risks from market volatility.
- Market Performance: The S&P 500 index rose by 0.03%, reaching a new all-time high, while the Nasdaq 100 increased by 0.43%, reflecting strong investor confidence in tech stocks, particularly chipmakers and AI infrastructure.
- ASML Order Surge: ASML Holding NV reported record Q4 bookings of €13.2 billion, significantly exceeding the consensus of €6.85 billion, which not only solidifies the company's leadership in the semiconductor industry but also boosts market optimism regarding sustainable AI spending.
- Economic Data Impact: US MBA mortgage applications fell by 8.5% in the week ending January 23, with the purchase mortgage sub-index down 0.4% and refinancing down 15.7%, indicating pressure from high interest rates on the housing market that could affect future consumer spending.
- Political Risk Escalation: President Trump threatened new 100% tariffs on US imports from Canada and mentioned the possibility of a partial government shutdown, creating uncertainty that could negatively impact the stock market, prompting investors to closely monitor the upcoming FOMC meeting results.











