Danaher (DHR) closed the most recent trading day at $274.23, moving -0.11% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 0.12%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the industrial and medical device maker had gained 13.72% over the past month, outpacing the Conglomerates sector’s gain of 6.57% and the S&P 500’s gain of 5.93% 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 $2.44 per share. This would mark a year-over-year decline of 9.29%. Our most recent consensus estimate is calling for quarterly revenue of $7.63 billion, down 6.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.53 per share and revenue of $30.74 billion. These totals would mark changes of +4.78% and +4.36%, respectively, from last year.
Any recent changes to analyst estimates for Danaher should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Danaher is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Danaher has a Forward P/E ratio of 26.06 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 15.68.
Meanwhile, DHR’s PEG ratio is currently 2.17. 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. DHR’s industry had an average PEG ratio of 1.9 as of yesterday’s close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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