Here's Why Danaher (DHR) Fell More Than Broader Market
The latest trading session saw Danaher (DHR) ending at $230.81, denoting a -1.7% adjustment from its last day's close. This change lagged the S&P 500's 0.8% loss on the day. Meanwhile, the Dow experienced a drop of 0.76%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
Shares of the industrial and medical device maker have appreciated by 7% over the course of the past month, outperforming the Conglomerates sector's gain of 5.58% and the S&P 500's gain of 3.4%.
The upcoming earnings release of Danaher will be of great interest to investors. The company's earnings report is expected on January 30, 2024. In that report, analysts expect Danaher to post earnings of $1.88 per share. This would mark a year-over-year decline of 34.49%. Alongside, our most recent consensus estimate is anticipating revenue of $5.94 billion, indicating a 29.04% downward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Danaher. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.43% decrease. Danaher is currently a Zacks Rank #3 (Hold).
Digging into valuation, Danaher currently has a Forward P/E ratio of 30.04. This valuation marks a premium compared to its industry's average Forward P/E of 15.38.
We can additionally observe that DHR currently boasts a PEG ratio of 2.5. 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 the market closed yesterday, the Diversified Operations industry was having an average PEG ratio of 2.28.
The Diversified Operations industry is part of the Conglomerates sector. This industry, currently bearing a Zacks Industry Rank of 25, finds itself in the top 10% echelons 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.
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
