Industrial conglomerate Danaher Corporation's recent results were better than they superficially looked. Even though
its second quarter guidance was lower than the market had hoped for,
there is good reason to believe that Danaher has upside potential in
2014. Moreover, the earnings report suggested good things for other
companies such as dental distributor Patterson Companies in 2014, but less so for testing and measurement company Agilent Technologies . On balance, the positives outweighed the negatives, but is the company's stock still a good value?
3 reasons why Danaher's results were good
Danaher is the sort of company that often disappears under the radar of investors due to its low dividend yield and its P/E ratio of over 20 times current earnings. Moreover, its less than double-digit forecast EPS growth rate doesn't excite many. On the other hand, it's one of the best run companies in the industrial sector, and has relatively defensive end markets.
Danaher is the sort of company that often disappears under the radar of investors due to its low dividend yield and its P/E ratio of over 20 times current earnings. Moreover, its less than double-digit forecast EPS growth rate doesn't excite many. On the other hand, it's one of the best run companies in the industrial sector, and has relatively defensive end markets.
Focusing on the recent results, there are three key reasons why investors should like the company's stock.
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