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Danaher (DHR) Outpaces Stock Market Gains: What You Should Know

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Danaher (DHR - Free Report) closed the most recent trading day at $237.67, moving +1.36% from the previous trading session. This change outpaced the S&P 500's 0.67% gain on the day. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 9.29%.

Prior to today's trading, shares of the industrial and medical device maker had lost 1.5% over the past month. This has lagged the Conglomerates sector's gain of 2.6% and the S&P 500's gain of 2.65% in that time.

Investors will be hoping for strength from Danaher as it approaches its next earnings release, which is expected to be July 25, 2023. On that day, Danaher is projected to report earnings of $2.01 per share, which would represent a year-over-year decline of 27.17%. Meanwhile, our latest consensus estimate is calling for revenue of $7.1 billion, down 8.36% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.43 per share and revenue of $29.44 billion. These totals would mark changes of -13.88% and -6.45%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Danaher. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Danaher currently has a Zacks Rank of #4 (Sell).

Digging into valuation, Danaher currently has a Forward P/E ratio of 24.86. This valuation marks a premium compared to its industry's average Forward P/E of 16.35.

Investors should also note that DHR has a PEG ratio of 2.37 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DHR's industry had an average PEG ratio of 1.87 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 95, putting it in the top 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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