Danaher (DHR) Declines More Than Market: Some Information for Investors
Danaher (DHR) closed at $219.44 in the latest trading session, marking a -1.21% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.06%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.31%.
Heading into today, shares of the industrial and medical device maker had gained 13.61% over the past month, outpacing the Conglomerates sector's gain of 9.47% and the S&P 500's gain of 5.1% in that time.
Investors will be eagerly watching for the performance of Danaher in its upcoming earnings disclosure. The company is expected to report EPS of $1.88, down 34.49% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $5.94 billion, indicating a 29.08% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.19 per share and a revenue of $27.1 billion, signifying shifts of -25.21% and -13.89%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Danaher. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. Danaher presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Danaher is at present trading with a Forward P/E ratio of 27.13. This indicates a premium in contrast to its industry's Forward P/E of 16.9.
Investors should also note that DHR has a PEG ratio of 2.26 right now. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Danaher Corporation (DHR) : Free Stock Analysis Report
