Jim Cramer just bought Abbott stock: should you too?

A near 2.0% post-earnings decline in Abbott Laboratories (NYSE: ABT) warrants an investment in the health care giant, says Jim Cramer.

Cramer’s bullish view on Abbott stock

His Charitable Trust bought 275 shares of the medical devices company at $112 each on Monday.

Cramer is confident that the weight-loss drugs are not a threat for this Chicago-based maker of FreeStyle Libre (continuous glucose monitoring system).

The Mad Money host is bullish on Abbott stock also for the nutrition business that its management believes will grow 6.0% this year. The New York listed firm reported better-than-expected revenue for its fourth financial quarter last week as Invezz reported here.

$ABT is all the more attractive considering it pays a dividend yield of 1.94% as well, as per Jim Cramer.

Abbott stock deserves a premium multiple

Note that Abbott Laboratories has plans of launching a nutritional supplement that would help restrict muscle loss related to the use of weight-loss drugs.

JPMorgan estimates about 30 million people in the U.S. to be on GLP-1 by the end of this decade – which means millions of people could be consuming Abbott’s drink by 2030.

$ABT now forecasts between $4.50 to $4.70 of adjusted EPS in its fiscal 2024. Analysts, in comparison, were at $4.63. But Jim Cramer reminded followers of his Charitable Trust today that this leader in medical devices and healthcare solutions has a history of being conservative with guidance.

All in all, the famed investor is convinced that Abbott stock deserves to trade at a premium to its historical average.