Danaher (DHR) Surpasses Market Returns: Some Facts Worth Knowing
Danaher (DHR) ended the recent trading session at $221.35, demonstrating a +1.77% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.39%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.2%.
Shares of the industrial and medical device maker witnessed a gain of 10.4% over the previous month, beating the performance of the Conglomerates sector with its gain of 7.44% and the S&P 500's gain of 5.28%.
The investment community will be closely monitoring the performance of Danaher in its forthcoming earnings report. The company's upcoming EPS is projected at $1.95, signifying a 32.06% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $5.93 billion, indicating a 29.09% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.26 per share and a revenue of $27.1 billion, signifying shifts of -24.57% and -13.9%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Danaher is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, Danaher is currently exchanging hands at a Forward P/E ratio of 26.33. This valuation marks a premium compared to its industry's average Forward P/E of 17.1.
We can also see that DHR currently has a PEG ratio of 2.19. 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. As of the close of trade yesterday, the Diversified Operations industry held an average PEG ratio of 2.19.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
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
