In the latest trading session, Danaher (DHR) closed at $262.66, marking a -0.98% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.11%, and the tech-heavy Nasdaq lost 0.06%.
Prior to today's trading, shares of the industrial and medical device maker had lost 5.37% over the past month. This has was narrower than the Conglomerates sector's loss of 12.26% and the S&P 500's loss of 10.4% in that time.
Danaher will be looking to display strength as it nears its next earnings release, which is expected to be October 20, 2022. In that report, analysts expect Danaher to post earnings of $2.24 per share. This would mark a year-over-year decline of 6.28%. Meanwhile, our latest consensus estimate is calling for revenue of $7.09 billion, down 1.9% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.40 per share and revenue of $30.39 billion, which would represent changes of +3.48% and +3.19%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection remained stagnant. Danaher currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Danaher is holding a Forward P/E ratio of 25.51. This valuation marks a premium compared to its industry's average Forward P/E of 14.19.
Investors should also note that DHR has a PEG ratio of 1.27 right now. 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 1.56 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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.
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