Danaher (DHR) Gains But Lags Market: What You Should Know
In the latest trading session, Danaher (DHR) closed at $320.79, marking a +0.35% move from the previous day. This change lagged the S&P 500's 0.62% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the industrial and medical device maker had gained 1.33% over the past month, outpacing the Conglomerates sector's loss of 3.34% and the S&P 500's gain of 0.39% in that time.
Wall Street will be looking for positivity from Danaher as it approaches its next earnings report date. The company is expected to report EPS of $2.50, up 20.19% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.76 billion, up 14.82% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.85 per share and revenue of $29.07 billion, which would represent changes of +56.1% and +30.47%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Danaher. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.46% higher. Danaher is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Danaher currently has a Forward P/E ratio of 32.46. Its industry sports an average Forward P/E of 17.5, so we one might conclude that Danaher is trading at a premium comparatively.
Investors should also note that DHR has a PEG ratio of 1.49 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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