Yahoo Finance Danaher (DHR) Outpaces Stock Market Gains: What You Should Know
Danaher (DHR) closed at $255.75 in the latest trading session, marking a +1.62% move from the prior day. This move outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.
Prior to today's trading, shares of the industrial and medical device maker had gained 3.58% over the past month. This has outpaced the Conglomerates sector's gain of 2.25% and lagged the S&P 500's gain of 5.67% in that time.
Investors will be hoping for strength from Danaher as it approaches its next earnings release, which is expected to be April 25, 2023. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $7.03 billion, down 8.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.14 per share and revenue of $30.04 billion, which would represent changes of -7.4% and -4.56%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Danaher. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Danaher currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Danaher currently has a Forward P/E ratio of 24.82. Its industry sports an average Forward P/E of 16.21, so we one might conclude that Danaher is trading at a premium comparatively.
Also, we should mention that DHR has a PEG ratio of 2.07. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.53 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 107, which puts it in the top 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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Danaher Corporation (DHR) : Free Stock Analysis Report
