Danaher (DHR) closed at $272.48 in the latest trading session, marking a +1.14% move from the prior day. This change outpaced the S&P 500's 0.41% loss on the day. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 0.07%.
Heading into today, shares of the industrial and medical device maker had lost 6.12% over the past month, outpacing the Conglomerates sector's loss of 6.44% and lagging the S&P 500's loss of 5.13% in that time.
Danaher will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.24, down 6.28% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.09 billion, down 1.9% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.40 per share and revenue of $30.39 billion. These totals would mark changes of +3.48% and +3.19%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Danaher. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Danaher is currently a Zacks Rank #3 (Hold).
In terms of valuation, Danaher is currently trading at a Forward P/E ratio of 25.91. Its industry sports an average Forward P/E of 16.19, so we one might conclude that Danaher is trading at a premium comparatively.
Also, we should mention that DHR has a PEG ratio of 1.29. 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 1.57 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 74, which puts it in the top 30% 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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