CNBC’s Jim Cramer said he thinks this could be a good year for small-cap stocks and shared his five least-known healthcare companies.
“I think 2024 could ultimately be the year that small-cap stocks regain their momentum,” he said. “This is a group that fell out of fashion when interest rates soared and will work much better when rates fall.”
- Whole assets: Integer Holdings is a leading medical device manufacturer, making products for the companies that design them. Cramer said he thinks this company benefits from high health care utilization rates because it could take years before patients receive elective procedures they’ve put off during the pandemic.
- Progyny: Cramer said the fertility benefits company’s shares don’t reflect its rapid growth. Progyny helps companies provide family planning and fertility services to their employees. For Cramer, the company’s business remains strong, even though its latest financial results have been mixed. He added that due to labor shortages, employers may be more willing to offer these benefits.
- Owens and minor: Owens & Minor has fared well during the pandemic because it is a major producer of personal protective equipment. Although the stock fell after Covid, Cramer said the company was able to use its gains to make healthcare acquisitions and suggested it could succeed in the healthcare utilization space health.
- Pharmaceutical catalysts: Cramer said he doesn’t want to recommend most biotechs, but he likes Catalyst Pharmaceuticals. The company buys early-stage drugs to treat rare diseases and brings them to market, and he said he’s optimistic in part because it launched a new drug in February.
- Addus Home Care: For Cramer, a healthcare investment theme is moving care out of hospitals and into less expensive settings. Addus HomeCare provides home medical care, such as daily assistance and palliative care, to patients at home. He was also impressed by the company’s latest earnings report, which beat Wall Street’s expectations.
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