Why Danaher (DHR) is a Top Growth Stock for the Long-Term

Zacks Investment Research suggests Danaher (DHR), currently a Zacks Rank #3 (Hold), could be a compelling growth pick, citing a Growth Style Score of B and a projected 2.9% year-over-year earnings growth for the current fiscal year. The consensus estimate for fiscal year 2025 has increased by $0.06 to $7.70 per share, driven by eight upward revisions from analysts in the last 60 days, and DHR has an average earnings surprise of 8.5%.

Analysis

Danaher Corporation (DHR) currently holds a Zacks Rank #3 (Hold), yet exhibits promising characteristics for growth-oriented investors, underscored by a VGM Score of B and a Growth Style Score of B. The company is forecasting a 2.9% year-over-year earnings growth for the current fiscal year. Notably, sentiment surrounding its future earnings has improved, with eight analysts revising their fiscal 2025 earnings estimates upwards in the past 60 days. This has led to an increase in the Zacks Consensus Estimate for fiscal 2025 by $0.06 to $7.70 per share. Furthermore, DHR has a track record of outperforming expectations, boasting an average earnings surprise of 8.5%. While the overall rank suggests a neutral short-term outlook according to the Zacks methodology, the strong growth-specific indicators and positive analyst revisions indicate underlying fundamental strength and potential for appreciation, aligning with the strongly positive sentiment score of 0.75 attributed to the stock.

Key Decisions for Investors

• Investors should consider Danaher for a growth-focused portion of their portfolio, given its B-rated Growth Style Score and positive earnings estimate revisions, despite its current Zacks Rank #3 (Hold).
• Monitor DHR's earnings reports closely, as continued performance above its 8.5% average earnings surprise and sustained upward estimate revisions could signal a potential upgrade in its Zacks Rank.
• While the 'Hold' rating warrants caution, the positive growth attributes suggest that DHR could be a candidate for accumulation by investors with a longer-term horizon who are willing to look beyond the immediate 30-day outlook implied by the Zacks Rank.