Danaher (DHR) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Danaher (DHR) closed at $248.38, marking a +1.46% move from the previous day. This move outpaced the S&P 500's daily gain of 1.3%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 7.48%.
Prior to today's trading, shares of the industrial and medical device maker had lost 4.48% over the past month. This has lagged the Conglomerates sector's loss of 3.36% and the S&P 500's loss of 2.95% in that time.
Danaher will be looking to display strength as it nears its next earnings release. In that report, analysts expect Danaher to post earnings of $2.26 per share. This would mark a year-over-year decline of 18.12%. Meanwhile, our latest consensus estimate is calling for revenue of $7.04 billion, down 8.41% from the prior-year quarter.
DHR's full-year Zacks Consensus Estimates are calling for earnings of $10.14 per share and revenue of $30.05 billion. These results would represent year-over-year changes of -7.4% and -4.51%, respectively.
Any recent changes to analyst estimates for Danaher should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Danaher is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Danaher is holding a Forward P/E ratio of 24.14. This valuation marks a premium compared to its industry's average Forward P/E of 12.43.
Investors should also note that DHR has a PEG ratio of 2.01 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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