Danaher (DHR) Suffers a Larger Drop Than the General Market: Key Insights
Danaher (DHR) closed the most recent trading day at $230.87, moving -1.7% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.15%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.09%.
The industrial and medical device maker's stock has climbed by 6.1% in the past month, exceeding the Conglomerates sector's gain of 0.71% and the S&P 500's gain of 3.5%.
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's upcoming EPS is projected at $1.88, signifying a 34.49% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $5.94 billion, indicating a 29.04% decline compared to the corresponding quarter of the prior year.
Investors might also notice recent changes to analyst estimates for Danaher. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.86% decrease. As of now, Danaher holds a Zacks Rank of #3 (Hold).
With respect to valuation, Danaher is currently being traded at a Forward P/E ratio of 30.05. This denotes a premium relative to the industry's average Forward P/E of 15.34.
One should further note that DHR currently holds a PEG ratio of 2.5. 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. As the market closed yesterday, the Diversified Operations industry was having an average PEG ratio of 2.26.
The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 29, placing it within the top 12% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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
