Trade-Ideas: Danaher (DHR) Is Today's New Lifetime High Stock
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Danaher as such a stock due to the following factors:
- DHR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $220.5 million.
- DHR has traded 607,037 shares today.
- DHR is trading at a new lifetime high.
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More details on DHR:
Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The stock currently has a dividend yield of 0.6%. DHR has a PE ratio of 26. Currently there are 13 analysts that rate Danaher a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Danaher has been 3.6 million shares per day over the past 30 days. Danaher has a market cap of $65.2 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.04 and a short float of 2.1% with 5.07 days to cover. Shares are up 11.2% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Danaher as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- DHR's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for DANAHER CORP is rather high; currently it is at 53.85%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.93% significantly outperformed against the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Industrial Conglomerates industry. The net income increased by 106.2% when compared to the same quarter one year prior, rising from $680.60 million to $1,403.40 million.
- The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that DHR's debt-to-equity ratio is low, the quick ratio, which is currently 0.67, displays a potential problem in covering short-term cash needs.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Danaher Ratings Report.
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