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Danaher (DHR) Dips More Than Broader Markets: What You Should Know

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Danaher (DHR - Free Report) closed at $303.92 in the latest trading session, marking a -0.45% move from the prior day. This move lagged the S&P 500's daily loss of 0.1%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the industrial and medical device maker had lost 4.07% in the past month. In that same time, the Conglomerates sector gained 1.93%, while the S&P 500 gained 3.67%.

Investors will be hoping for strength from Danaher as it approaches its next earnings release, which is expected to be January 27, 2022. The company is expected to report EPS of $2.49, up 19.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.76 billion, up 14.82% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Danaher. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.75% higher within the past month. Danaher is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Danaher is holding a Forward P/E ratio of 29.78. This valuation marks a premium compared to its industry's average Forward P/E of 18.44.

It is also worth noting that DHR currently has a PEG ratio of 1.37. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow DHR in the coming trading sessions, be sure to utilize Zacks.com.


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