We’re buying 25 shares of Danaher at roughly $229 each. Following Monday’s trade, Jim Cramer’s Charitable Trust will own 550 shares of DHR, increasing its weighting to roughly 3.6% from 3.4%. The health care sector has been the massive loser available in the market for the reason that election. If the SPDR Health Care Sector Fund , commonly known as the XLV, trades lower Monday it would mark its sixth straight negative session. The group is facing a giant wave of uncertainty after President-elect Donald Trump picked Robert F. Kennedy Jr., a vaccine skeptic and obesity drug critic , to be his secretary of the Department of Health and Human Services. There may be nothing the market hates greater than uncertainty, which is why stocks can fall so hard when there may be an unclear view of policy. But uncertainty also can create opportunity. We never need to downplay risks — but at a certain level, a stock will price in too many potential changes, reflecting outcomes that could be too severe. If what happens in real life seems to be higher than what was initially feared, then nibbling on high-quality health care names at these prices could develop into bargains. We’re not buying big here since the uncertainty overhang could linger for a while, but a few of these stocks are getting oversold. That is why we’re turning to a few of health care stocks which were beaten down over the past couple of weeks. Because the election, Danaher shares have fallen from $250 each to $230 while Eli Lilly shares have dropped 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 make various products including targeted therapies corresponding to vaccines. Danaher got loads of business from vaccine makers during Covid. A part of the explanation why Danaher has come under pressure after the RFK Jr. pick is concerns about funding to the National Institutes of Health, the country’s national medical agency, and a part of HHS. But as Leerink analysts estimated in a research note Monday, lower than 1% of Danaher’s revenue has exposure to NIH funding. The opposite side of Danaher’s risk is that if pharma corporations reduce on research and development as a result of regulatory changes. This might be something to observe in the longer term, but we expect Danaher stock trading at around 27 times 2025 earnings estimates reflect a few of this risk. Individually, we can be buyers of 5 shares of Eli Lilly at roughly $718 each if we weren’t restricted from trading. The five shares represent half of what we sold in early September when the stock traded at around $960. LLY YTD mountain Eli Lilly YTD Eli Lilly shares fell from $903 to $846 after a disappointing third-quarter report where inventory destocking of its fast-selling GLP-1 medications caused the corporate to miss estimates and lower full-year guidance. We were troubled by Eli Lilly’s messaging after the quarter, but felt encouraged in the times that followed that management reiterated to the analyst community that the miss was purely destocking driven and never based on fundamentals or underlying demand . However the possible appointment of RFK Jr. has created an entire host of uncertainty for Eli Lilly and the drug stocks at large. Last week we identified RFK Jr.’s criticism of the obesity drugs, along with his two fundamental issues being pricing and his view that dietary and food-systems changes are the higher option to tackle high rates of obesity. Sure, pricing may turn out to be more of a difficulty in the longer term, but there is no debating the science and the drugs’s ability to treat obesity and other conditions. The recent correction in Eli Lilly puts shares trading barely above 30 times the consensus 2025 adjusted earnings per share estimate on FactSet of $22.52. Should you look out to 2026, Lilly shares are trading at roughly 24 times. While these multiples are a premium to other drug stocks, we expect it’s low-cost considering the corporate’s top-tier growth that can proceed as GLP-1 supply capability catches as much as demand. One other thing to take into accout is that Eli Lilly faces no major patent cliff or IRA pricing exposure through the remaining of the last decade. (Jim Cramer’s Charitable Trust is long DHR, LLY. See here for a full list of the stocks.) As a subscriber to the 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 trust’s portfolio. If Jim has talked a couple of stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the 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. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
A key step forward for Novo Nordisk’s GLP-1 pill
Novo Nordisk flags flutter outside their office in Bagsvaerd, on the outskirts of Copenhagen, Denmark, July 14, 2025. Tom Little...
