Stock price when the opinion was issued
He bought this in early 2022, though it was mired in an inventory glut. He's stuck with it ebcause he expected it to bounce back. It still has a high PE though. Is down 19% from its August high, but is now a good entry point. An analyst just upgraded it. He expects the healthcare sector to come back next year.
Diversified diagnostics and bio-processing franchise. Good capital allocators. On the upswing in terms of cyclicality. Under-deployed balance sheet can be utilized accretively. Until recently, valuation was coming down. Defensive healthcare, a more resilient vertical than industrials. More complex treatments of the future benefit a name like this (and TMO). Yield is 0.64%.
(Analysts’ price target is $245.38)Since Covid hit, everything's slowed down. More pressure from the government. Long-term view is that its equipment will still need to be used to develop new drugs. Products needed by universities, governments, hospitals, biotech. Just have to wait for demand to pick up. Lots of opportunity for sales growth, just not at the same pace as before Covid. A buying opportunity.
Not much of a dividend. Challenges with global revenues. Beat revenue by 3.5%, but bottom line fell 39%. Underperforming both the sector and the S&P 500. Healthcare sector is super-undervalued, and that could change.
Can trade successfully if you watch technicals closely. Rarely meets analysts' expectations. Don't get greedy; when it hits $220, keep an eye on changing momentum.
Loves it. Within tools diagnostics, they boast high growth among its peers. They make the equipment that produces biological drugs. Are exposed to the R&D space, which is seeing less funding due to Washington. The stock took a hit after the Waters-Becton deal, fearing more competition. 80% of revenue is recurring. Medium/long-term this remains a good business. There is a lot of policy noise on pharma, though, from Trump. This and this space needs to see some catalysts, perhaps in the fall, when we see hard numbers on the impact of Washington.
DHR is expensive at 28x forward earnings and it has not been able to fully recover to its all-time highs in 2021 when it traded above $330. DHR has been trading quite choppily since. It is flat year-to-date but up 11% over the last year. We do think that DHR could be a good long-term healthcare play and some of the current risks/fears due to the new US administration may be slightly overstated for healthcare stocks.
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