This story originally appeared on Zacks

In the latest trading session, Danaher (DHR) closed at $287.03, marking a -0.48% move from the previous day. This change was narrower than the S&P 500’s daily loss of 0.97%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.

Heading into today, shares of the industrial and medical device maker had lost 8.13% over the past month, lagging the Conglomerates sector’s gain of 0.46% and the S&P 500’s loss of 0.78% in that time.

Danaher will be looking to display strength as it nears its next earnings release, which is expected to be January 27, 2022. In that report, analysts expect Danaher to post earnings of $2.50 per share. This would mark year-over-year growth of 20.19%. Our most recent consensus estimate is calling for quarterly revenue of $7.81 billion, up 15.47% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Danaher. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.35% higher. Danaher is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, Danaher is holding a Forward P/E ratio of 28.09. For comparison, its industry has an average Forward P/E of 18.19, which means Danaher is trading at a premium to the group.

Investors should also note that DHR has a PEG ratio of 1.29 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Diversified Operations stocks are, on average, holding a PEG ratio of 1.29 based on yesterday’s closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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