CNBC’s Jim Cramer on Thursday recommended investors take a look at buying stocks in diagnostic companies as the coronavirus pandemic rages on.
“With Covid spiking and a very good chance Joe Biden will win the White House and initiate a more test-friendly administration, I bet test stocks have a lot more wiggle room.”Bad money“Host said.
While Americans were preparing for the election numbers, the US counted a terribly new record for coronavirus cases on Wednesday with over 102,000 positive tests. Officials have counted more than 1,000 deaths in the country for consecutive days, lagging behind new cases.
“The pandemic is out of control again,” said Cramer.
According to The Covid Tracking Project, more than 1 million Covid-19 tests have been performed daily in the US since the end of October.
“It’s huge, although we need more [testing] Given these horrific case numbers, “said Cramer, who found a” major bottleneck “in processing tests.
The seven stocks he recommended Thursday include big companies like Thermo Fisher, a diagnostics maker valued at $ 204 billion, and a speculative game at Fluidigm, a $ 485 million company that specializes in life science -Tools manufactures.
While some of his suggestions are at or near their highs, investors can buy them on withdrawals, according to Cramer. Below is his take on each test stock pick:
“The stock [has] had such a remarkable run. It’s up about 59 for the year, including a 40 point gain last week, “he said.” As much as I hate to hunt, I think it’s worth embarking on some sort of retreat worthwhile. “
“Hologic had a monster run.” It’s a 45% increase for the year, but you know when you get pen down and look at the new estimates, “Cramer said.” The stock is only trading at 12 times next year’s earnings. I’ll give you permission to nibble with it tomorrow. “
“When the company reported a few weeks ago, we learned that the diagnostic segment was up 39% from the previous quarter. Abbott said it had sold a total of 100 million tests and had an execution rate of 1.3 to 1.4 for the quarter Billions of dollars to leave. ” COVID is testing sales, “he said.
“I’ve been telling you to buy this for ages, and while it’s up 8% this week alone, I think you’ll stick with it.”
“PerkinElmer turned off the lights when it was reported last month, but the stock hit a new high today. Now you want to wait for a pullback,” Cramer said.
“Quidel is going right up against Abbott Labs here, but with the lack of testing still going on, competition really isn’t that big of a deal. However, the stock is up 275% over the year and it’s been a wild trader,” he said. “Why not let something cool down?”
“While the stock is up 95% over the year, it’s still a long way from its all-time highs from the summer. That thing briefly hit $ 12.45 in August,” Cramer said. “Fluidigm … feels kind of too risky to me, but if you want something to speculate on, it’s worth investigating.”
“These companies are practically printing money right now because they are pretty much a duopoly. That was actually a serious problem in terms of managing the pandemic, they have a bottleneck, but it’s also great for Labcorp and Quest shareholders.” he said. “Both stocks stay cheap.”