The Street, on the other hand, is being rewarded for its optimism and faith in the company's management. The question now is, where is the stock heading next? While I do believe Dover's stock is not cheap, the organic growth results makes me question why the Street prices Danaher at a P/E that is four points higher than Dover. I take that as a tell-tale sign these shares are still being discounted, albeit slightly.
With the recent completion of the Finder Pompe deal, there is clearly more value to be had from the standpoint of revenue and cash-flow growth. At the very least, this points to a fair-market value of at least $100 per share. It's not exceptional upside, but the downside is very limited while collecting a decent yield at 1.60%. At the time of publication, the author held no position in any of the stocks mentioned. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.