Stock

Danaher is on the verge of breakout as RBC analysts make a big call

“Defensive” and “high quality” is what RBC Capital Markets called Danaher Corporation (NYSE:DHR) stock. In a note on Wednesday, RBC said that Danaher’s leverage of only 1.7 times makes the stock attractive. The analysts expressed the satisfaction that Covid-19 concerns are overdone for Danaher. That makes the stock attractive for its defensive characteristics at a very low price. 

RBC’s note came barely a day before the release of Danaher’s second-quarter results. The company reported a per-share earnings of $2.76, an increase from $2.46 in the prior year. Investors expected the earnings to come lower at $2.34 per share. The revenue in the quarter was $7.75 billion, up from $7.22 billion in the prior year. That also beat estimates of $7.29. billion. 

Danaher again gave a convincing high-single-digit percentage growth in revenue in Q3. The stock reacted by posting an impressive 5% gain on Thursday. With the strong fundamentals, we believe Danaher stock is a strong buy. Let’s look at technical indicators to explore the stock further. 

Danaher is trapped in a descending triangle but keeps support intact

Source – TradingView

Technically, Danaher remains trapped on a descending triangle. However, the stock maintains above key support of $240. The stock is yet to break below the support since the bearish move ended in early May. It has largely consolidated above $240.

With the strong fundamentals, bulls are likely to outwit the bears at the $240 level. That would result in a bullish breakout and set Danaher for higher levels. The stock is a buy.

Summary

Danaher is a strong buy despite remaining on a descending triangle. The stock is eyeing a breakout due to strong fundamentals. Investors should lock value now or can consider buying after a breakout.

The post Danaher is on the verge of breakout as RBC analysts make a big call appeared first on Invezz.

Disclaimer: MonopolyWinnersUpdates.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 MonopolyWinnersUpdates.com. All Rights Reserved.

To Top