Back to top

Image: Bigstock

Here's How Much a $1000 Investment in Danaher Made 10 Years Ago Would Be Worth Today

Read MoreHide Full Article

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Danaher (DHR - Free Report) ten years ago? It may not have been easy to hold on to DHR for all that time, but if you did, how much would your investment be worth today?

Danaher's Business In-Depth

With that in mind, let's take a look at Danaher's main business drivers.

Danaher Corporation is a global conglomerate that designs, manufactures and markets diverse lines of professional, industrial, commercial and consumer products. It is headquartered in Washington, DC. The company’s segmental details are provided below:

Life Sciences (51.7% of revenues generated in second-quarter 2021) segment offers a broad range of research tools used to analyze a range of critical areas — including genes, proteins, metabolites and cells — to understand the causes of diseases, identify new therapies, and test new drugs and vaccines. Range of industries served includes biopharmaceutical, food and beverage, medical, aerospace, microelectronics, and general industrial.

Diagnostics (32.4%) segment offers analytical instruments, reagents, consumables, software and services that are deployed in reference laboratories, hospitals, physicians' offices and other critical care settings. It helps to diagnose diseases and take suitable treatment decisions.

Environmental & Applied Solutions (15.9%) segment offers products and services that help keep food and water supplies safe globally. Its instrumentation, software, consumables, services and disinfection systems helps analyze, treat and manage the quality of ultra-pure, potable, waste, ground, source and ocean water. Moreover, the product identification businesses develop and manufacture equipment, consumables and software for various printing, marking, coding, packaging, design and color-management applications.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Danaher ten years ago, you're likely feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in July 2011 would be worth $5,902.90, or a 490.29% gain, as of July 28, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 237.31% and gold's return of 7.16% over the same time frame.

Looking ahead, analysts are expecting more upside for DHR.

In the past three months, Danaher’s shares have outperformed the industry. The company is poised to gain from the Danaher Business System (“DBS”), the policy of rewarding shareholders, buyouts and investment in product innovation in the quarters ahead. In second-quarter 2021, its earnings and sales beat estimates by 20.6% and 7.8%, respectively. For third-quarter 2021, the company anticipates core revenue growth in the mid to high-teens percentage range. The pandemic-led tailwinds are expected to boost core sales by high-single digits in the quarter. However, a rise in costs and expenses can be concerning for the company. High debts raise financial obligations as well as international operations have associated risks. In the past seven days, the company's earnings estimates have been revised upward for 2021 and 2022.

Over the past four weeks, shares have rallied 7.28%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Danaher Corporation (DHR) - free report >>

Published in