Danaher (DHR) Outpaces Stock Market Gains: What You Should Know

Danaher (DHR) closed at $281.40 in the latest trading session, marking a +1.25% move from the prior day. This change outpaced the S&P 500's 1.24% gain on the day. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.15%.

Heading into today, shares of the industrial and medical device maker had gained 3.82% over the past month, outpacing the Conglomerates sector's loss of 0.6% and the S&P 500's loss of 2.45% 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 $2.63 per share. This would mark year-over-year growth of 4.37%. Our most recent consensus estimate is calling for quarterly revenue of $7.55 billion, up 10.03% from the year-ago period.

DHR's full-year Zacks Consensus Estimates are calling for earnings of $10.41 per share and revenue of $30.83 billion. These results would represent year-over-year changes of +3.58% and +4.68%, respectively.

Any recent changes to analyst estimates for Danaher should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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 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 holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Danaher's current valuation metrics, including its Forward P/E ratio of 26.7. This valuation marks a premium compared to its industry's average Forward P/E of 17.78.

Meanwhile, DHR's PEG ratio is currently 1.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DHR's industry had an average PEG ratio of 1.43 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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