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

In the latest trading session, Danaher (DHR) closed at $247.25, marking a -1.9% move from the previous day. This move lagged the S&P 500's daily loss of 1.47%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq lost 1.57%.

Heading into today, shares of the industrial and medical device maker had lost 3.62% over the past month, lagging the Conglomerates sector's loss of 0.18% and the S&P 500's loss of 1.43% in that time.

Investors will be hoping for strength from Danaher as it approaches its next earnings release. In that report, analysts expect Danaher to post earnings of $1.87 per share. This would mark a year-over-year decline of 26.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

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It is also important to note the recent changes to analyst estimates for Danaher. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Danaher currently has a Forward P/E ratio of 28.53. Its industry sports an average Forward P/E of 15.69, so we one might conclude that Danaher is trading at a premium comparatively.

Meanwhile, DHR's PEG ratio is currently 2.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Diversified Operations stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 41% 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.

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

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