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

In the latest trading session, Danaher (DHR) closed at $242.11, marking a -1.12% move from the previous day. This move lagged the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, added 2.77%.

Coming into today, shares of the industrial and medical device maker had lost 4.45% in the past month. In that same time, the Conglomerates sector lost 2.33%, while the S&P 500 lost 5.06%.

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 $2.26, down 18.12% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.04 billion, down 8.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.14 per share and revenue of $30.05 billion, which would represent changes of -7.4% and -4.51%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Danaher. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Danaher is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Danaher is holding a Forward P/E ratio of 24.15. For comparison, its industry has an average Forward P/E of 11.88, which means Danaher is trading at a premium to the group.

Also, we should mention that DHR has a PEG ratio of 2.01. 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. The Diversified Operations industry currently had an average PEG ratio of 1.46 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.

To follow DHR in the coming trading sessions, be sure to utilize

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