Danaher (DHR) Rises Yet Lags Behind Market: Some Facts Worth Knowing
The latest trading session saw Danaher (DHR) ending at $248.77, denoting a +0.12% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.86%. Meanwhile, the Dow experienced a rise of 1.22%, and the technology-dominated Nasdaq saw an increase of 0.51%.
The industrial and medical device maker's shares have seen a decrease of 2.51% over the last month, not keeping up with the Conglomerates sector's gain of 4.42% and the S&P 500's gain of 2.84%.
The investment community will be paying close attention to the earnings performance of Danaher in its upcoming release. The company is slated to reveal its earnings on April 23, 2024. On that day, Danaher is projected to report earnings of $1.74 per share, which would represent a year-over-year decline of 26.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.64 billion, down 21.31% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.63 per share and a revenue of $24.09 billion, representing changes of +0.66% and -12.73%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Danaher. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Danaher currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Danaher is holding a Forward P/E ratio of 32.56. For comparison, its industry has an average Forward P/E of 17.74, which means Danaher is trading at a premium to the group.
Investors should also note that DHR has a PEG ratio of 3.77 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Diversified Operations industry held an average PEG ratio of 2.26.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 26, positioning it in the top 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Danaher Corporation (DHR) : Free Stock Analysis Report
