Jim Cramer says Abbott Laboratories shares can go higher thanks to Covid delta surge

• CNBC's Jim Cramer said Tuesday he sees more near-term upside for shares of Abbott Laboratories as the U.S. grapples with the Covid delta variant.
• He cited increased demand for the company's rapid coronavirus test.
• Similarly, the "Mad Money" host said Regeneron, which makes an antibody therapy, has room to run too.

CNBC's Jim Cramer said Tuesday he sees more near-term upside for shares of Abbott Laboratories as the U.S. grapples with the Covid delta variant.

The "Mad Money" host pointed specifically to the company's BinaxNOW coronavirus test, a self-administered diagnostic that can be bought over the counter at pharmacy chains like Walgreens and CVS.

"This Binax is now the hottest product on the market. Just as Abbott had to pre-announce how poorly Binax was doing, sometimes I wonder if they have to pre-announce to the upside now that it's doing so well," Cramer said.

The Food and Drug Administration authorized Abbott Labs' rapid Covid test for at-home use in December, right around the time vaccines for the disease were cleared on an emergency use basis. As availability of the BinaxNOW test increased during the spring, so too did access to Covid vaccines, which helped drive down coronavirus infection levels across the country.

Now, in recent weeks, coronavirus cases have jumped in the U.S., leading Cramer to believe more and more Americans are going to seek out Abbott Labs' rapid test.

"We've got so many antivaxxers in this country that they've kept the pandemic alive and now we've got new variants with a decent chance of breaking through the vaccines from Pfizer and, to a lesser extent, Moderna. You know what that means? Testing, testing, testing," Cramer said.

The Covid situation also is benefiting shares of Regeneron, which makes an antibody therapy to treat the disease, Cramer said.

"The tables have turned, the fortunes restored for Regeneron and Abbott Labs. Their stocks have been up all along with all the other slowdown winners," Cramer said, alluding to the fact shares of Regeneron and Abbott Labs are up 11% and 7%, respectively, in the past month. That compares with the S&P 500's roughly 2.8% gain in the same time period.

"Now they have another kicker, and I think they've still got higher to go," Cramer said.

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