If You Invested $1000 in Danaher 10 Years Ago, This Is How Much You'd Have Now
Investing in certain stocks can pay off in the long run, especially if you hold on for a decade or more.
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Danaher (DHR) ten years ago? It may not have been easy to hold on to DHR for all that time, but if you did, how much would your investment be worth today?
Danaher's Business In-Depth
With that in mind, let's take a look at Danaher's main business drivers.
Danaher Corporation is a global conglomerate that designs, manufactures and markets diverse lines of professional, industrial, commercial and consumer products. It is headquartered in Washington, DC. The company’s segmental details are provided below:
Life Sciences (51.7% of revenues generated in second-quarter 2021) segment offers a broad range of research tools used to analyze a range of critical areas — including genes, proteins, metabolites and cells — to understand the causes of diseases, identify new therapies, and test new drugs and vaccines. Range of industries served includes biopharmaceutical, food and beverage, medical, aerospace, microelectronics, and general industrial.
Diagnostics (32.4%) segment offers analytical instruments, reagents, consumables, software and services that are deployed in reference laboratories, hospitals, physicians' offices and other critical care settings. It helps to diagnose diseases and take suitable treatment decisions.
Environmental & Applied Solutions (15.9%) segment offers products and services that help keep food and water supplies safe globally. Its instrumentation, software, consumables, services and disinfection systems helps analyze, treat and manage the quality of ultra-pure, potable, waste, ground, source and ocean water. Moreover, the product identification businesses develop and manufacture equipment, consumables and software for various printing, marking, coding, packaging, design and color-management applications.
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Danaher, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in September 2011 would be worth $7,721.95, or a 672.20% gain, as of September 6, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 286.33% and gold's return of -6.47% over the same time frame.
Analysts are forecasting more upside for DHR too.
In the past three months, Danaher’s shares have outperformed the industry. The company is poised to gain from Danaher Business System (“DBS”), the policy of rewarding shareholders through dividend payments, synergistic benefits from acquired assets (with 1% contribution to sales growth in second-quarter 2021) and investment in product innovation in the quarters ahead. The company anticipates core revenue growth in the mid to high-teens range for the third quarter of 2021 and in the high-teens for 2021. The pandemic-led tailwinds are expected to boost core sales by high-single digits in the third quarter and by 10% in 2021. However, a rise in costs and expenses can be concerning for the company. In the past 60 days, its earnings estimates have been increased for the third quarter of 2021, 2021 and 2022.
Shares have gained 8.18% over the past four weeks and there have been 8 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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