Tuesday, February 11, 2014

The Motley Fool: Danaher Corporation Rarely Cheap, But A Proven Winner

If you're looking for a well-run conglomerate trading at a significant discount to fair value, you're probably going to pass over Danaher (NYSE: DHR  ) . That's typically the case, though, as this company's demonstrated strength in generating margins, cash flow, and returns on capital makes it a perennial favorite with institutional investors.

Even if the expected returns from the stock don't meet your hurdle rate today, Danaher looks like a good name for a watch list. Management has over $8 billion in dry powder for M&A activity and a clear desire to do a large deal (or two). Combine that with a turned-around diagnostics business and underappreciated growth opportunities in product ID and water treatment, and this is a company with solid long-term prospects.

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Danaher Corporation Rarely Cheap, But A Proven Winner

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