Stock of the Day

July 12, 2021

Danaher (DHR)

$195.63
+$3.48 (+1.8%)
Market Cap: $139.75B

About Danaher

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The Biotechnology segments offers bioprocess technologies, consumables, and services that advance, accelerate, and integrate the development and manufacture of therapeutics; cell line and cell culture media development services; cell culture media, process liquids and buffers for manufacturing, chromatography resins, filtration technologies, aseptic fill finish; single-use hardware and consumables and services, such as the design and installation of full manufacturing suites; lab filtration, separation, and purification; lab-scale protein purification and analytical tools; reagents, membranes, and services; and healthcare filtration solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, liquid handling automation instruments, antibodies and reagents, and particle counting and characterization; microscopes; protein consumables; industrial filtration products; and genomic medicines, such as custom nucleic acid products, plasmid DNA, RNA, and proteins under the ABCAM, ALDEVRON, BECKMAN COULTER, IDT, LEICA MICROSYSTEMS, MOLECULAR DEVICES, PALL, PHENOMENEX and SCIEX brands. The Diagnostics segment offers chemistry, immunoassay, microbiology, and automation systems; and molecular, acute care, and pathology diagnostics products. This segment also provides clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is based in Washington, the District of Columbia.

Danaher Bull Case

Here are some ways that investors could benefit from investing in Danaher Co.:

  • Danaher Co. recently reported strong quarterly earnings, with an EPS of $1.88, surpassing analysts' expectations, indicating robust financial performance.
  • The current stock price is around $189.54, which is significantly lower than its 52-week high of $281.70, suggesting potential for price appreciation.
  • The company has a solid net margin of 16.33%, reflecting efficient management and profitability, which can be attractive for investors seeking stable returns.
  • Danaher Co. has a healthy return on equity of 10.82%, indicating effective use of shareholders' equity to generate profits, a positive sign for potential investors.
  • The firm has a low payout ratio of 24.85%, suggesting that it retains a significant portion of its earnings for reinvestment, which could lead to future growth.

Danaher Bear Case

Investors should be bearish about investing in Danaher Co. for these reasons:

  • The stock has experienced a decline of about 0.5% recently, which may indicate short-term volatility and investor uncertainty.
  • Danaher Co. has a relatively high PE ratio of 35.90, suggesting that the stock may be overvalued compared to its earnings, which could deter value-focused investors.
  • The company’s 200-day moving average is $213.59, indicating that the stock is currently trading below this average, which may signal a bearish trend.
  • Despite strong earnings, the overall market sentiment can impact stock performance, and any negative news could lead to further declines.
  • With 79.05% of the stock owned by institutional investors, there may be less room for retail investors to influence stock price movements.
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