Danaher (DHR) Moves 5% Higher: Will This Strength Last?

·2-min read

Danaher DHR shares rallied 5% in the last trading session to close at $257.08. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.8% loss over the past four weeks.

The increase in Danaher’s share price is the market’s reaction to the company agreeing to acquire privately-owned Aldevron. The buyout is anticipated to boost growth opportunities of Danaher’s Life Sciences segment in the genomic medicine field. It will make the introduction of vaccines and life-saving therapies a lot easier for Danaher’s customers.

This industrial and medical device maker is expected to post quarterly earnings of $2.04 per share in its upcoming report, which represents a year-over-year change of +41.7%. Revenues are expected to be $6.7 billion, up 26.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Danaher, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DHR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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