Stock of the Day

July 12, 2021

Danaher (DHR)

$209.86
+$1.91 (+0.9%)
Market Cap: $150.20B

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. reported earnings per share (EPS) of $2.14 for the latest quarter, meeting analysts' expectations, which indicates strong financial performance and stability.
  • The company has a solid return on equity of 10.82%, suggesting effective management and profitability relative to shareholder equity.
  • Danaher Co. has a net margin of 16.33%, reflecting its ability to convert revenue into profit efficiently, which is a positive indicator for potential investors.
  • Recent analyst upgrades, including a price target increase from KeyCorp to $310.00, suggest that market sentiment is favorable and that the stock may have growth potential.
  • The current stock price is approximately $224.13, which may present a buying opportunity for investors looking for value in a well-performing company.

Danaher Bear Case

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

  • Despite positive earnings, some analysts have downgraded their ratings, such as StockNews.com moving from a "buy" to a "hold," indicating potential concerns about future performance.
  • Wells Fargo & Company recently reduced their price target for Danaher Co. from $280.00 to $240.00, which may signal a lack of confidence in the stock's short-term growth.
  • Insider selling activity, with a senior vice president selling 5,700 shares, could raise concerns about the company's future prospects and insider confidence.
  • The dividend yield is relatively low at 0.53%, which may not attract income-focused investors looking for higher returns from dividends.
  • With a payout ratio of 20.45%, while sustainable, it indicates that a significant portion of earnings is being retained rather than distributed to shareholders, which may limit immediate returns.

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