Danaher (DHR) closed the most recent trading day at $205.64, moving +0.61% from the previous trading session. This change lagged the S&P 500’s 0.67% gain on the day. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.61%.
Prior to today’s trading, shares of the industrial and medical device maker had gained 1.11% over the past month. This has lagged the Conglomerates sector’s gain of 3.66% and the S&P 500’s gain of 7.78% in that time.
Investors will be hoping for strength from DHR as it approaches its next earnings release. On that day, DHR is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 17.24%. Meanwhile, our latest consensus estimate is calling for revenue of $5.52 billion, up 9.59% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.47 per share and revenue of $21.28 billion. These totals would mark changes of +23.76% and +6.73%, respectively, from last year.
Any recent changes to analyst estimates for DHR should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 0.92% higher. DHR currently has a Zacks Rank of #2 (Buy).
Investors should also note DHR’s current valuation metrics, including its Forward P/E ratio of 37.34. Its industry sports an average Forward P/E of 19.47, so we one might conclude that DHR is trading at a premium comparatively.
Investors should also note that DHR has a PEG ratio of 3.21 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. DHR’s industry had an average PEG ratio of 2.61 as of yesterday’s close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% 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.