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Danaher Corporation (DHR), headquartered in Washington, D.C., is a global leader in science and technology, specializing in providing a broad spectrum of innovative solutions in the life sciences, diagnostics, environmental, and applied sectors. With a market cap of $195.90 billion, Danaher plays a vital role in advancing healthcare and scientific research worldwide.
Companies valued at around $10 billion are typically classified as "large-cap stocks," and Danaher fits well into this category. As a leader in providing a wide range of solutions across life sciences, diagnostics, environmental, and applied markets, Danaher has built a strong market presence driven by its diverse portfolio of innovative products and a continuous focus on scientific and technological advancements.
DHR shares are trading 6% below their 52-week high of $281.70, which they hit on Aug. 1. DHR has seen a 1.2% decline over the last three months compared to the 6.2% returns seen in the Vanguard Health Care Index Fund ETF (VHT) during the same period.
In the longer term, DHR is up 14.4% on a YTD basis, and the shares have gained 14.5% over the past 52 weeks. The VHT has gained 12.8% in 2024 and 16.5% over the past year.
However, DHR has been trading above its 50-day moving average since late July and its 200-day moving average since mid-November 2023, indicating its bullish trend.
Shares of Danaher rose 5.3% following the release of its Q2 earnings on Jul. 23. Although the company’s sales dipped 2.9% year over year to $5.7 billion, it reduced its cost, leading to a 3.3% growth in gross profit to $3.4 billion. Moreover, it surpassed Wall Street’s EPS estimates by 9.6% to $1.72, making investors optimistic. Danaher also raised its investment in R&D by 8.3% to $391 million, demonstrating its approach toward growth and innovation.
Highlighting the contrast in performance, rival Thermo Fisher Scientific Inc. (TMO) has marginally underperformed DHR, with a 14.3% gain on a YTD basis.
Despite DHR's recent underperformance compared to the healthcare sector, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 20 analysts in coverage. The mean price target is $286.17, reflecting an 8.1% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
