We issued an updated research report on Danaher Corporation (DHR - Free Report) on Aug 19.
The conglomerate, with a market capitalization of $100.7 billion, currently carries a Zacks Rank #3 (Hold).
Below we discussed why it will be prudent for investors to hold on to this stock for now.
Factors Favoring Danaher
Share Price Performance & Earnings Estimates: The company reported better-than-expected results in the last four quarters, the average positive earnings surprise being 3.25%. In the last reported quarter, its earnings of $1.19 surpassed the Zacks Consensus Estimate of $1.15.
In the past three months, the company’s share price has gained 7.7% against the industry’s decline of 3.2%.
Danaher anticipates gaining from its focus on product innovation, superior product quality, building efficient workforce and enhancing shareholder value. Also, elevated demand for products — including iCELLis bioreactor system, DxH 900 analyzer, Esko, X-Rite, ChemTreat and others will be beneficial. For 2019, the company has risen its earnings guidance from $4.72-$4.80 to $4.75-$4.80 per share. It predicts the bottom line at $1.12-$1.15 per share in the third quarter, whereas it witnessed $1.10 in the year-ago quarter.
Also, the Zacks Consensus Estimate for the company’s earnings for 2019 and 2020 has been raised in the past 30 days. Earnings estimates are pegged at $4.79 for 2019 and $5.49 for 2020, reflecting growth of 0.2% and 0.5% from the respective 30-day-ago figures.
Danaher Corporation Price and Consensus