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

Danaher (DHR) closed at $306.38 in the latest trading session, marking a +0.34% move from the prior day. This move outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the industrial and medical device maker had lost 0.77% over the past month, lagging the Conglomerates sector's gain of 0.24% and the S&P 500's gain of 0.12% in that time.

Investors will be hoping for strength from Danaher as it approaches its next earnings release, which is expected to be January 27, 2022. In that report, analysts expect Danaher to post earnings of $2.50 per share. This would mark year-over-year growth of 20.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.81 billion, up 15.47% from the year-ago period.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 1.89% higher within the past month. Danaher currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Danaher is currently trading at a Forward P/E ratio of 29.75. This represents a premium compared to its industry's average Forward P/E of 18.24.

Meanwhile, DHR's PEG ratio is currently 1.37. 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 industry currently had an average PEG ratio of 1.37 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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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