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Danaher (DHR) Stock Sinks As Market Gains: What You Should Know

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Danaher (DHR - Free Report) closed the most recent trading day at $263.74, moving -0.87% from the previous trading session. This change lagged the S&P 500's 0.31% gain on the day. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq added 0.14%.

Coming into today, shares of the industrial and medical device maker had gained 6.74% in the past month. In that same time, the Conglomerates sector gained 2.1%, while the S&P 500 lost 1.38%.

Investors will be hoping for strength from Danaher as it approaches its next earnings release. On that day, Danaher is projected to report earnings of $2.35 per share, which would represent a year-over-year decline of 4.47%. Meanwhile, our latest consensus estimate is calling for revenue of $7.32 billion, up 1.4% from the prior-year quarter.

DHR's full-year Zacks Consensus Estimates are calling for earnings of $10.31 per share and revenue of $30.38 billion. These results would represent year-over-year changes of +2.59% and +3.14%, respectively.

Any recent changes to analyst estimates for Danaher should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. Danaher is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Danaher is holding a Forward P/E ratio of 25.81. This valuation marks a premium compared to its industry's average Forward P/E of 15.9.

It is also worth noting that DHR currently has a PEG ratio of 2.96. 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. DHR's industry had an average PEG ratio of 1.42 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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