Danaher (DHR) Ascends While Market Falls: Some Facts to Note
Danaher (DHR) closed at $222.52 in the latest trading session, marking a +1.72% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.1%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.16%.
Prior to today's trading, shares of the industrial and medical device maker had gained 13.93% over the past month. This has outpaced the Conglomerates sector's gain of 12.38% and the S&P 500's gain of 10.77% in that time.
Market participants will be closely following the financial results of Danaher in its upcoming release. The company is forecasted to report an EPS of $1.94, showcasing a 32.4% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.94 billion, indicating a 29.08% decrease compared to the same quarter of the previous year.
DHR's full-year Zacks Consensus Estimates are calling for earnings of $8.35 per share and revenue of $27.1 billion. These results would represent year-over-year changes of -23.74% and -13.89%, respectively.
Investors should also take note of any recent adjustments 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% decrease. Danaher is holding a Zacks Rank of #4 (Sell) right now.
In the context of valuation, Danaher is at present trading with a Forward P/E ratio of 26.19. This expresses a premium compared to the average Forward P/E of 16.73 of its industry.
Meanwhile, DHR's PEG ratio is currently 2.18. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Diversified Operations was holding an average PEG ratio of 2.18 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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Danaher Corporation (DHR) : Free Stock Analysis Report
