Danaher (DHR) Stock Sinks As Market Gains: What You Should Know
Danaher (DHR) closed at $247.97 in the latest trading session, marking a -0.08% move from the prior day. This move lagged the S&P 500's daily gain of 0.17%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the industrial and medical device maker had lost 0.38% over the past month, outpacing the Conglomerates sector's loss of 0.6% and lagging the S&P 500's gain of 0.25% in that time.
Investors will be hoping for strength from Danaher as it approaches its next earnings release. 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.
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.
Investors should also note any 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.
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. Within the past 30 days, our consensus EPS projection 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 24.47. This represents a premium compared to its industry's average Forward P/E of 16.1.
Also, we should mention that DHR has a PEG ratio of 2.04. 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 was holding an average PEG ratio of 1.41 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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