If You Invested $1000 in Danaher a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Danaher (DHR) ten years ago? It may not have been easy to hold on to DHR for all that time, but if you did, how much would your investment be worth today?
Danaher's Business In-Depth
With that in mind, let's take a look at Danaher's main business drivers.
Danaher Corporation is a global conglomerate that designs, manufactures and markets diverse lines of professional, industrial, commercial and consumer products. It is headquartered in Washington, DC. The company’s segmental details are provided below:
Life Sciences (51.7% of revenues generated in first-quarter 2021) segment offers a broad range of research tools used to analyze a range of critical areas — including genes, proteins, metabolites and cells — to understand the causes of diseases, identify new therapies, and test new drugs and vaccines. Range of industries served includes biopharmaceutical, food and beverage, medical, aerospace, microelectronics, and general industrial.
Diagnostics (31.8%) segment offers analytical instruments, reagents, consumables, software and services that are deployed in reference laboratories, hospitals, physicians' offices and other critical care settings. It helps to diagnose diseases and take suitable treatment decisions.
Environmental & Applied Solutions (16.5%) segment offers products and services that help keep food and water supplies safe globally. Its instrumentation, software, consumables, services and disinfection systems helps analyze, treat and manage the quality of ultra-pure, potable, waste, ground, source and ocean water. Moreover, the product identification businesses develop and manufacture equipment, consumables and software for various printing, marking, coding, packaging, design and color-management applications.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Danaher a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2011 would be worth $5,148.52, or a 414.85% gain, as of June 24, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 230.49% and gold's return of 13.59% over the same time frame.
Going forward, analysts are expecting more upside for DHR.
In the past three months, Danaher’s shares have outperformed the industry. The company is poised to gain from the Danaher Business System (“DBS”), the policy of rewarding shareholders, buyouts and investment in product innovation in the quarters ahead. Recently, it agreed to acquire Aldevron. For second-quarter 2021, the company anticipates core revenue growth, including Cytiva, of a mid-20 percent range. The pandemic-led tailwinds are expected to boost core sales by low-double digits in the quarter. However, a rise in costs and expenses can be concerning for the company. Also, high debts raise financial obligations and international businesses as well as international operations have associated risks. In the past 60 days, the company's earnings estimates have been revised upward for the second quarter and 2021.
Shares have gained 6.70% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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