Abbott’s (ABT) Exact Sciences Deal is “Very, Very Important,” Says Jim Cramer

ABT +3.34% EXAS +0.23%

We recently published 10 Stocks Jim Cramer Talked About. Abbott Laboratories (NYSE:ABT) is one of the stocks Jim Cramer discussed.

This show marked more than a month after Cramer discussed pharmaceuticals and diagnostics devices firm Abbott Laboratories (NYSE:ABT). However, the delay doesn't mean he's changed his sentiment about the firm. Cramer often calls Abbott Laboratories (NYSE:ABT) one of the most "reliable" healthcare companies in the business. In fact, in January, he went as far ahead as to call the firm "one of the great pharma stories because it's got the best growth in device and pharmaceuticals." In this appearance, the CNBC TV host commented on Abbott Laboratories (NYSE:ABT)'s announcement to buy cancer screening firm Exact Sciences for a cool $23 billion price tag. According to Cramer, the deal expands the firm's business portfolio:

"Well, let me tell you why I liked the deal. This is the weakest vertical, that Abbott has. It is very episodic right now, it's like, oh, there's HIV, flu, and now suddenly they have a consistent revenue stream. And David, it may be worth to pay that because Medicare and all the insurance companies accept this. Obviously it's something that's great for the system, that we can catch early detection. I like the deal but obviously other people don't. I think it has to be digested, it's a very expensive price."

While we acknowledge the potential of ABT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.