Danaher Corporation (DHR): Today's Featured Industrial Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Danaher Corporation ( DHR) pushed the Industrial industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Danaher Corporation fell $2.65 (-4.7%) to $53.45 on heavy volume. Throughout the day, 13.8 million shares of Danaher Corporation exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $52.55-$54 after having opened the day at $53.39 as compared to the previous trading day's close of $56.10. Other companies within the Industrial industry that declined today were: Edwards Group ( EVAC), down 10.2%, Altair Nanotechnologies ( ALTI), down 6%, LSI Industries ( LYTS), down 5.4%, and Park-Ohio Holdings ( PKOH), down 5%.
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Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services primarily in North America, Europe, and Asia/Australia. Danaher Corporation has a market cap of $39.36 billion and is part of the industrial goods sector. The company has a P/E ratio of 18.3, above the average industrial industry P/E ratio of 17.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 19.3% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Danaher Corporation a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Danaher Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, A123 Systems ( AONE), up 36.4%, Broadwind Energy ( BWEN), up 26.7%, Dixie Group ( DXYN), up 17.4%, and China Valves Technology ( CVVT), up 10.6%, were all gainers within the industrial industry with Deere ( DE) being today's featured industrial industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial industry could consider SPDR Dow Jones Industrial Average ( DIA) while those bearish on the industrial industry could consider ProShares UltraShort Industrials ( SIJ).

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