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

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Danaher (DHR - Free Report) closed the most recent trading day at $248.33, moving -0.74% from the previous trading session. This move lagged the S&P 500's daily loss of 0.57%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 1.04%.

Coming into today, shares of the industrial and medical device maker had lost 2.73% in the past month. In that same time, the Conglomerates sector lost 1.22%, while the S&P 500 gained 0.64%.

Danaher will be looking to display strength as it nears its next earnings release. On that day, Danaher is projected to report earnings of $1.87 per share, which would represent a year-over-year decline of 26.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.63 billion, down 13.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.84 per share and revenue of $28.49 billion. These totals would mark changes of -19.27% and -9.48%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Danaher. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 #4 (Sell).

Valuation is also important, so investors should note that Danaher has a Forward P/E ratio of 28.31 right now. Its industry sports an average Forward P/E of 16.49, so we one might conclude that Danaher is trading at a premium comparatively.

Investors should also note that DHR has a PEG ratio of 2.7 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Diversified Operations industry currently had an average PEG ratio of 1.97 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 109, putting it in the top 44% 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.

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

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