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Danaher (DHR) Stock Moves -0.3%: What You Should Know

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Danaher (DHR - Free Report) closed at $254.46 in the latest trading session, marking a -0.3% move from the prior day. This change was narrower than the S&P 500's 0.94% loss on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.

Coming into today, shares of the industrial and medical device maker had gained 2.21% in the past month. In that same time, the Conglomerates sector gained 2.69%, while the S&P 500 gained 1.85%.

Wall Street will be looking for positivity from Danaher as it approaches its next earnings report date. The company is expected to report EPS of $1.87, down 26.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.63 billion, down 13.47% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.83 per share and revenue of $28.49 billion, which would represent changes of -19.36% and -9.48%, respectively, from the prior year.

Any recent changes to analyst estimates for Danaher should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Danaher is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that Danaher has a Forward P/E ratio of 28.89 right now. For comparison, its industry has an average Forward P/E of 16.61, which means Danaher is trading at a premium to the group.

Also, we should mention that DHR has a PEG ratio of 2.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DHR's industry had an average PEG ratio of 1.97 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% 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.

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