Danaher Corporation (NYSE:DHR) had several weeks of downward pressure on the price. The stock appears to have consolidated in the range between $262 and $297.
Currently, the stock is trading at $276. The PEG ratio is 1.28, and the company is still rated low on value and growth. Danaher is still a sell unless Q1 earnings significantly beat expectations.
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Danaher is scheduled to release Q1 earnings tomorrow April 21. The company is expected to report the quarter’s EPS in the range between $263 and $266. The EPS is lower than the $2.69 reported in the last quarter but slightly higher than the $2.52 in the prior year.
We consider that the analyst projections are already priced in the stock. Consequently, post-earnings price movements will depend on how well the company performs against the projections.
Danaher faces downward pressure as lower-term averages sink lower
The price chart shows the lower term moving averages sliding below the 50-day average. This points to a short-term bearish pattern. The price of $276, however, is still above the 200-day average.
As the investors wait for the results, they look forward to seeing whether the Q1 earnings will inspire the markets. The challenge, however, is the RSI pointing to declining momentum and crashing any hopes of significant gains.
Summary
Danaher Corporation has a fair value of $215. The expected EPS from tomorrow’s release of Q1 earnings is between $2.63 and $2.66. Though unlikely, investors wait to see whether the company will surprise the markets and send the prices higher.
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Source: https://invezz.com/news/2022/04/21/will-danaher-reverse-the-trend-of-the-declining-share-price-after-q1-results/