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Here's Why Investors Should Retain Danaher (DHR) Stock for Now

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Danaher Corporation (DHR - Free Report) stands to benefit from a strong performance of its Life Sciences segment owing to robust demand for bioprocessing products despite supply-chain constraints and raw material cost inflation.

High activity levels from early-stage research to later-stage development and production should aid the bioprocessing business. Healthy demand for products related to molecular testing and higher non-COVID testing volumes will be beneficial to the Diagnostics segment.  Also, strength across DHR’s consumables business and solid demand for equipment are steadily driving its Environmental & Applied Solutions segment’s performance. Danaher expects core revenue growth in the range of low-single digits for the third quarter of 2022 and mid-single digits for 2022 from the respective year-ago period’s actuals.

DHR’s acquisition of Aldevron (August 2021) enhanced its foothold in the genomic medicine field. Also, Danaher added Vanrx Pharmasystems and Swift Biosciences to its portfolio in first-quarter 2021. In second-quarter 2022, acquisitions boosted DHR’s sales 2.5%.

Danaher’s policy of rewarding its shareholders handsomely through dividend payments and share buybacks is worth mentioning. DHR used $411 million to pay out dividends in the first six months of 2022. The quarterly dividend rate was hiked 4 cents in February 2022.

In light of the above-mentioned positives, we believe, investors should hold on to the Danaher stock for now, as is suggested by its current Zacks Rank #3 (Hold).

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In the past six months, the stock has inched up 2% against the industry’s decline of 3.9%.

Stocks to Consider

Some better-ranked companies are discussed below.

Carlisle Companies (CSL - Free Report) sports a Zacks Rank #1 (Strong Buy), currently. CSL pulled off a trailing four-quarter earnings surprise of 28%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

In the past 60 days, Carlisle’s earnings estimates have increased 14.6% for 2022. The stock has rallied 28.8% in the past six months.

Griffon Corporation (GFF - Free Report) has a Zacks Rank #2 (Buy). GFF delivered a trailing four-quarter earnings surprise of 104.6%, on average.

In the past 60 days, Griffon’s earnings estimates have increased 3% for fiscal 2022 (ending September 2022). The stock has soared 47% in the past six months.

Valmont Industries, Inc. (VMI - Free Report) presently has a Zacks Rank of 2. VMI’s earnings surprise in the last four quarters was 13.7%, on average.

In the past 60 days, Valmont’s earnings estimates have increased 3.8% for 2022. The stock has rallied 31.3% in the past six months.

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