Danaher (DHR) Beats Stock Market Upswing: What Investors Need to Know
In the latest market close, Danaher (DHR) reached $232.86, with a +0.63% movement compared to the previous day. This change outpaced the S&P 500's 0.14% gain on the day. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.16%.
Shares of the industrial and medical device maker have appreciated by 5.78% over the course of the past month, underperforming the Conglomerates sector's gain of 6.83% and outperforming the S&P 500's gain of 4.89%.
Analysts and investors alike will be keeping a close eye on the performance of Danaher in its upcoming earnings disclosure. The company's earnings report is set to go public on January 30, 2024. The company is predicted to post an EPS of $1.88, indicating a 34.49% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.94 billion, showing a 29.04% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $8.07 per share and a revenue of $25.63 billion, demonstrating changes of -26.3% and -18.57%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Danaher. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Currently, Danaher is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Danaher is currently trading at a Forward P/E ratio of 28.67. Its industry sports an average Forward P/E of 17.77, so one might conclude that Danaher is trading at a premium comparatively.
We can additionally observe that DHR currently boasts a PEG ratio of 2.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Diversified Operations industry had an average PEG ratio of 2.53.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 46, positioning it in the top 19% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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
