Jim Cramer's Top Five Health-Care Small-Cap Stocks for 2024

During a recent show on CNBC, Jim Cramer expressed his optimism for the small-cap stock market in the health-care industry. He suggested that 2024 might witness a resurgence in the vitality of small-cap stocks. As per Cramer, these stocks have the potential to thrive as interest rates decline, in contrast to when they became less popular amidst rising interest rates. Cramer proceeded to reveal his top five picks for lesser-known companies in the health-care sector, citing their potential for growth.

Integer Holdings, a prominent manufacturer of medical devices, caught Cramer's attention. The company produces a range of medical products for various firms involved in their design. Cramer emphasized that Integer Holdings stands to benefit from the high rates of health-care utilization. He projected a prolonged surge in demand for non-urgent medical procedures that individuals deferred during the pandemic, potentially offering sustained business for the company.

Cramer highlighted the underappreciated growth of Progyny, a company specializing in fertility-benefits management. Despite its stock not fully reflecting its rapid expansion, Cramer remains optimistic about its future. Progyny's services assist businesses in providing family planning and fertility services to their employees. Cramer pointed out that the ongoing labor shortage may encourage more employers to offer these benefits, signaling further growth potential for Progyny.

Owens & Minor

Owens & Minor, a significant producer of personal protective equipment, drew Cramer's interest due to its notable performance during the pandemic. Although its stock experienced a dip post-pandemic, Cramer highlighted the company's strategic use of its gains to acquire assets in the health-care sector. He suggested that Owens & Minor might prosper in the health-care utilization market.

While expressing caution about recommending most biotech companies, Cramer expressed a favorable view of Catalyst Pharmaceuticals. This company focuses on acquiring early-stage drugs for rare diseases and bringing them to market. Cramer's optimism about Catalyst Pharmaceuticals is partly rooted in its recent launch of a new drug in February, indicating potential growth in the future.

Addus HomeCare

Highlighting the growing trend of shifting medical care from hospitals to more cost-effective settings, Cramer spotlighted Addus HomeCare for its in-home medical care services. The company provides vital assistance, including day-to-day support and hospice care, to patients within their homes. Cramer also commended the company for surpassing Wall Street's expectations in its most recent earnings report.

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