Cramer's Investing Club: We're buying more of one club name and updating two others

Published Tue, Jan 11 20223:45 PM ESTUpdated Fri, Jan 14 20222:47 PM EST

(This article was sent first to members of the CNBC Investing Club with Jim Cramer. To get the real-time updates in your inbox, subscribe here .) After you receive this email, we will be buying 50 shares of Danaher (DHR) at roughly $302.66. Following the trade, the Charitable Trust will own 350 shares of Danaher. This buy will increase DHR's weight in the portfolio from about 2.15% to roughly 2.5%. A handful of stocks in the Charitable Trust are on the move Tuesday after management updated their outlook for the fourth quarter and beyond. Here, we break down the guidance updates and share our thoughts on the stocks. Danaher provided an update to its fourth-quarter 2021 outlook ahead of its presentation at the JPMorgan Healthcare Conference. Danaher now estimates fourth-quarter revenue increased in the high-teens to low-twenties percent range, with core revenue growth in the high-teens percent range. The consensus fourth-quarter revenue estimate on FactSet implied 16% revenue growth, meaning Danaher's update this morning was much better than what analysts were anticipating. As noted by CEO Rainer Blair in this morning's press release , the strength came from all across the portfolio. Blair said Danaher achieved better-than-expected results across all three of its reporting segments, but Life Sciences and Diagnostics were the leaders. On top of the preannouncement, Danaher received a positive recommendation from Wall Street after Bernstein initiated coverage on the stock, naming it a top pick with an Outperform rating and $365 price target — over 20% higher than Monday's $303 close. Despite the preannouncement and analyst push, Danaher shares were trading flat at the time this article was written. We think this muted reaction is plain wrong and the stock price should be higher with earnings moving up. That's why we are jumping on this opportunity to pick up more shares and improve our average cost basis. Ahead of their presentation at the ICR Conference, American Eagle Outfitters (AEO) management updated its fourth quarter 2021 outlook and revised its 2023 financial ta