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With a market cap of $193.6 billion, Danaher Corporation (DHR) is a leading global life sciences and diagnostics innovator based in Washington, D.C. It designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide through its biotechnology; life sciences; diagnostics; and environmental & applied solutions segments.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Danaher Corporation fits this criterion perfectly, boasting a market cap exceeding the mark. Renowned for its innovative approach to life sciences and diagnostics, Danaher Corporation applies Kaizen principles of continuous improvement and waste elimination through its Danaher Business System (DBS), further solidifying its position as a leader in the field.
However, the industrial and medical device maker has slipped 2.8% from its 52-week high of $268.98, achieved late last month. Despite this recent pullback, shares of DHR are up 2.2% over the past three months, outperforming the broader Dow Jones Industrials Average's ($DOWI) 1.3% decline over the same time frame.
Longer term, DHR is up 13% on a YTD basis, outpacing the DOWI's 2.3% gains. Moreover, shares of Danaher Corporation have surged 25.7% over the past 52 weeks, compared to Dow Jones' 14.2% returns over the same time frame.
To confirm the bullish price trend, DHR has been trading above its 200-day moving average since November last year. While it has also remained above its 50-day moving average since November, there has been some fluctuation since April.
DHR's outperformance likely stems from a combination of factors, including acquisitions in life sciences like Abcam, boosting its exposure to high-growth markets. Plus, the stock rose after its German peer Sartorius (SARTF) reported better-than-expected Q4 results because Sartorius' performance is seen as an indicator of overall market health and recovery in the bioprocess sector. Plus, DHR stock rose 7.2% on April 23 after exceeding Q1 profit and sales projections, fueled by strength in its diagnostics and bioprocessing businesses.
To emphasize the stock’s outperformance, top rival Agilent Technologies, Inc. (A) is underperforming – not just DHR but the broader equity benchmarks. Shares of Agilent have gained 11.2% over the past 52 weeks but are down 5.5% on a YTD basis.
Even though the stock's value has soared, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from the 19 analysts covering the stock, and the mean price target of $277.18 represents a premium of just 6% to current levels.
On the date of publication, Sohini Mondal 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.
