Danaher Stock

Danaher Corporation (NYSE:DHR) may not be a household name, but it is one of the largest commercial manufacturers of products and services in the world. If that sounds general, it is. Danaher has its hands in a multitude of different industries, and is a true industrial conglomerate in every sense of the word. The company was founded back in 1969, but it was not until 1984 that Danaher took on the form it is today. At one point it was ranked 160th on the Fortune 500 list of companies, and has built its way up to a near $180 billion USD market cap. Learn more

The stock has shown incredible strength, and has outpaced the benchmark S&P 500 index over the past 52-week period by 15%. Shares are trading at around $250.00 USD per share at the time of this writing, which is just under the 52-week high price of $261.43 that was set in early April. Let’s take a look at how Danaher Corporation projects as an investment into the future.

The Bullish Case: Any well diversified industrial conglomerate, especially one as large as Danaher, has a strong case for a bedrock stock to put in any stock portfolio. Danaher operates with three distinct branches: Life Sciences, Diagnostics, and Environmental and Applied Solutions. These three divisions consist of such leading edge industries like health care, medical research, water treatment and sanitation, and scientific instruments and tools.

Over the past year Danaher thrived during the COVID-19 pandemic as the life sciences tools were widely used by vaccine developers as well as the sales of its COVID-19 tests. At its recent quarterly earnings call, management even raised guidance for the rest of 2021, showing shareholders that the company is not relying on COVID-19 to maintain strong numbers and growth. Danaher even pays a small dividend yield of 0.33% annually, which always helps to buoy some income investors.

The Bearish Case: Investors need to wonder if the same growth can continue once COVID-19 has subsided. It was an exceptional year for Danaher, and even though management raised guidance, it doesn’t necessarily mean that will come true. As long as the world needs to be vaccinated, Danaher will do well financially, but may need to rely on things like booster shots or additional variant therapies to continue the growth it showed in 2020 and early 2021. Other than that, it is difficult to make a case against investing in Danaher, unless of course you see future growth potential as a barrier to an investment. Danaher is already a massive conglomerate, and the ability for the stock to grow exponentially from today is somewhat capped.

Final Verdict on Danaher Corporation: In the same vein as other conglomerates like 3M (NYSE:MMM), Johnson & Johnson (NYSE:JNJ), and even General Electric (NYSE:GE), Danaher is a solid company that will never tank your portfolio. If you are looking for a steady foundational stock, that will most likely continue to show slow and steady growth, Danaher makes for an excellent choice, even though it is already richly valued.

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