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Here's Why Danaher (DHR) Gained But Lagged the Market Today

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Danaher (DHR - Free Report) ended the recent trading session at $244.28, demonstrating a +0.98% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.11%. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.

The industrial and medical device maker's shares have seen a decrease of 4.81% over the last month, not keeping up with the Conglomerates sector's loss of 4.23% and the S&P 500's gain of 0.48%.

The investment community will be paying close attention to the earnings performance of Danaher in its upcoming release. The company is slated to reveal its earnings on April 23, 2024. The company is predicted to post an EPS of $1.72, indicating a 27.12% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.64 billion, showing a 21.31% drop compared to the year-ago quarter.

DHR's full-year Zacks Consensus Estimates are calling for earnings of $7.62 per share and revenue of $24.09 billion. These results would represent year-over-year changes of +0.53% and -12.73%, respectively.

Any recent changes to analyst estimates for Danaher should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Danaher possesses a Zacks Rank of #2 (Buy).

Looking at its valuation, Danaher is holding a Forward P/E ratio of 31.73. This signifies a premium in comparison to the average Forward P/E of 18.22 for its industry.

Meanwhile, DHR's PEG ratio is currently 3.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. DHR's industry had an average PEG ratio of 1.81 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 20, placing it within the top 8% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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