4-Star Stocks Poised to Pop: Danaher

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industrial conglomerate Danaher (NYS: DHR) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Danaher's business and see what CAPS investors are saying about the stock right now.

Danaher facts

Headquarters (Founded)

Washington, D.C. (1969)

Market Cap

$31.8 billion

Industry

Conglomerates

Trailing-12-Month Revenue

$14 billion

Management

President/CEO H. Lawrence Culp Jr. (since 2001)

CFO Daniel Comas (since 2005)

Return on Equity (Average, Past 3 Years)

12.3%

Cash/Debt

$551.6 million / $6.6 billion

Competitors

3M (NYS: MMM)

General Electric (NYS: GE)

ITT (NYS: ITT)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 507 members who have rated Danaher believe the stock will outperform the S&P 500 going forward. These bulls include mesConfitures and Tradersinfo.

Earlier this summer, mesConfitures listed several of Danaher's positives:

Steady growth and dividend-paying, with a smart management team heading it up, focused on getting the most value possible out of every step in the process. Thriftiness as a culture, powering super companies. Very good at recognizing companies that will benefit from their process.

Over the past five years, in fact, Danaher has grown its bottom line at a solid rate of 17% annually. That's faster than that of competitors like 3M (5%) and ITT (12%), let alone General Electric's average earnings decline of 5%.

CAPS member Tradersinfo elaborates on the bull case:

BUY $60.50 price target. Danaher is one of those great large-cap fast-growers you can't afford to not include in your portfolio. My price target is rather conservative, given that DHR will be most likely growing at a fairly constant 11-12% rate over the next five years. This pick does not really need any pitch, as the Company's great sales execution really speaks for itself.

What do you think about Danaher, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackDanaher?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of 3M. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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