Danaher Looks Like a Relative Bargain

NEW YORK ( TheStreet) -- With shares of General Electric ( GE), Honeywell ( HON) and ABB ( ABB) all trading at or near their 52-week highs, there certainly aren't any bargains left in the industrial sector these days. But in the case of Danaher ( DHR), whose stock is far from cheap, this may still be one of the few bargains left.

Danaher stock, which has just received an upgrade from a Goldman Sachs analyst with an $88 price target, is not going to sneak up on anyone. After all, this well-run industrial conglomerate has been a popular pick on the Street for years.

Even so, while the stock has already gained 36% on the year and continues to trade in tandem with GE and Honeywell, management has shown that it has bigger ambitions. And with the company's strong history of return on invested capital, not to mention its reputation as a strategic acquirer, I believe this is a company to watch heading into 2014.

Now, I won't tell you that Danaher has had an exceptional year. Despite the sector's performance, which has been (at best) uninspiring due to weakness in the industrial environment, it's a marvel that Danaher has posted any gains at all.

That said, the encouraging aspect about this business is that Danaher has never disappointed investors from the standpoint of business segment profits or organic revenue growth. And this recent quarter, which produced 6% and 9% growth for revenue and profits, respectively, was no different.

[Read: Four Biotech 'Surprise' Stocks for 2014]

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