In the latest trading session, Danaher (DHR) closed at $293.51, marking a +1.06% move from the previous day. This change traded in line with S&P 500. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.18%.
Heading into today, shares of the industrial and medical device maker had lost 2.46% over the past month, lagging the Conglomerates sector's loss of 2.17% and the S&P 500's loss of 1.14% in that time.
Investors will be hoping for strength from Danaher as it approaches its next earnings release. On that day, Danaher is projected to report earnings of $2.24 per share, which would represent a year-over-year decline of 6.28%. Meanwhile, our latest consensus estimate is calling for revenue of $7.09 billion, down 1.9% from the prior-year quarter.
DHR's full-year Zacks Consensus Estimates are calling for earnings of $10.40 per share and revenue of $30.39 billion. These results would represent year-over-year changes of +3.48% and +3.19%, respectively.
Any recent changes to analyst estimates for Danaher should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 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 27.93. For comparison, its industry has an average Forward P/E of 16.74, which means Danaher is trading at a premium to the group.
We can also see that DHR currently has a PEG ratio of 1.39. 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 Diversified Operations industry currently had an average PEG ratio of 1.63 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% 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.
To follow DHR in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Danaher Corporation (DHR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research