Danaher (DHR) Increases Despite Market Slip: Here's What You Need to Know
The latest trading session saw Danaher (DHR) ending at $234.79, denoting a +1.49% adjustment from its last day's close. This change outpaced the S&P 500's 0.57% loss on the day. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 1.64%.
The industrial and medical device maker's shares have seen an increase of 4.15% over the last month, not keeping up with the Conglomerates sector's gain of 5.51% and outstripping the S&P 500's gain of 4%.
Investors will be eagerly watching for the performance of Danaher in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 30, 2024. The company is forecasted to report an EPS of $1.88, showcasing a 34.49% 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 29.04% decrease compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Danaher. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Currently, Danaher is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Danaher is presently trading at a Forward P/E ratio of 29.59. This signifies a premium in comparison to the average Forward P/E of 16.19 for its industry.
Investors should also note that DHR has a PEG ratio of 2.47 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. The average PEG ratio for the Diversified Operations industry stood at 2.3 at the close of the market yesterday.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Danaher Corporation (DHR) : Free Stock Analysis Report
