Danaher In Some Doldrums

I closed my last piece on Danaher (DHR) by saying that I expected the shares to remain in “buy-side purgatory” for a little while, and so they have. The shares are down about 1% over the last almost-three months, and this latest quarterly update was once again not everything that investors wanted or have come to expect from this conglomerate.

I have lingering concerns that Danaher's “zig when others zag” strategy will have some near-term consequences; Danaher is much more of a life sciences/health care company than in the past, and there really isn't the underlying market recovery “oomph” here that there is in some parts of the “grease and gears” industrial world. That doesn't make Danaher a bad company, though its lagging performance in diagnostics and dental is becoming a little more concerning. Danaher is one of the very few companies in its comp group that seems undervalued (assuming I'm not overestimating future growth), and while the short-term momentum is lacking, the valuation makes it worth another look.

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Danaher In Some Doldrums