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Danaher (DHR) Gains As Market Dips: What You Should Know

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Danaher (DHR - Free Report) closed the most recent trading day at $255.05, moving +1.01% from the previous trading session. This change outpaced the S&P 500's 0.08% loss on the day. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq gained 11.55%.

Coming into today, shares of the industrial and medical device maker had lost 6.26% in the past month. In that same time, the Conglomerates sector lost 2.37%, while the S&P 500 lost 1.03%.

Wall Street will be looking for positivity from Danaher as it approaches its next earnings report date. This is expected to be January 24, 2023. The company is expected to report EPS of $2.44, down 9.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.64 billion, down 6.26% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Danaher. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Danaher is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Danaher has a Forward P/E ratio of 24.33 right now. For comparison, its industry has an average Forward P/E of 12.79, which means Danaher is trading at a premium to the group.

Meanwhile, DHR's PEG ratio is currently 2.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DHR's industry had an average PEG ratio of 1.68 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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