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Danaher (DHR) Rises As Market Takes a Dip: Key Facts

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Danaher (DHR - Free Report) closed the latest trading day at $226.75, indicating a +0.67% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.37%. On the other hand, the Dow registered a loss of 0.62%, and the technology-centric Nasdaq decreased by 0.19%.

Coming into today, shares of the industrial and medical device maker had lost 0.53% in the past month. In that same time, the Conglomerates sector lost 4.14%, while the S&P 500 gained 1.56%.

The investment community will be closely monitoring the performance of Danaher in its forthcoming earnings report. The company is scheduled to release its earnings on January 30, 2024. The company's upcoming EPS is projected at $1.88, signifying a 34.49% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $5.94 billion, indicating a 29.04% decline compared to the corresponding quarter of the prior year.

Any recent changes to analyst estimates for Danaher should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.91% lower. Currently, Danaher is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Danaher is currently trading at a Forward P/E ratio of 28.94. Its industry sports an average Forward P/E of 15.5, so one might conclude that Danaher is trading at a premium comparatively.

Investors should also note that DHR has a PEG ratio of 2.41 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DHR's industry had an average PEG ratio of 2.27 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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