Earnings set to rise in 2025

Article Excerpt

DANAHER CORP. $224 is still a buy for aggressive investors. The company (New York symbol DHR; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding 722.3 million; Market cap: $161.8 billion; Price-to-sales ratio: 7.7; Dividend yield: 0.5%; TSINetwork Rating: Above Average; www.danaher.com) makes precision-testing equipment and tools for medical research labs and municipal water utilities. Danaher often uses acquisitions to enhance its expertise in certain areas. For example, in December 2023, it acquired U.K.-based Abcam plc (Nasdaq symbol ABCM) for $5.7 billion. Abcam provides the life sciences market with antibodies, reagents, biomarkers, and assays for drug development. That purchase helped lift Danaher’s revenue in the three months ended December 31, 2024, by 2.1%, to $6.54 billion from $6.41 billion a year earlier. If you factor out the contribution of acquisitions and currency rates, revenue improved 1.0%. Earnings per share gained 2.4%, to $2.14 from $2.09. In 2025, Danaher’s earnings will probably rise 8% to $8.09 a share. The stock trades at a high, but still reasonable, 27.7 times…