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

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Danaher (DHR - Free Report) closed at $255.60 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.06%.

Prior to today's trading, shares of the industrial and medical device maker had lost 0.52% over the past month. This has was narrower than the Conglomerates sector's loss of 3.25% and the S&P 500's loss of 3.6% in that time.

Investors will be hoping for strength from Danaher as it approaches its next earnings release. In that report, analysts expect Danaher to post earnings of $2.44 per share. This would mark a year-over-year decline of 9.29%. Our most recent consensus estimate is calling for quarterly revenue of $7.64 billion, down 6.26% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.53 per share and revenue of $30.74 billion, which would represent changes of +4.78% and +4.37%, respectively, from the prior year.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Danaher is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Danaher has a Forward P/E ratio of 24.56 right now. For comparison, its industry has an average Forward P/E of 14.71, which means Danaher is trading at a premium to the group.

It is also worth noting that DHR currently has a PEG ratio of 2.05. 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 1.71 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 138, which puts it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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