2024-04-25 03:21:44 ET
Summary
- Danaher Corporation, a healthcare/biotech/life sciences supplier, has shown resilience and strength in its core businesses despite post-pandemic growth challenges.
- The company maintains strong margins, consistently generates elevated free cash flow, and focuses on innovation for deeper market penetration and share gains.
- While its current valuation may be high, Danaher benefits from secular growth trends and has the potential for sustained long-term growth. However, post-pandemic challenges and market volatility could impact short-term performance.
Introduction
If there's one thing we have discussed a lot over the past few months, it's my increasing focus on "value" stocks, as I believe the market's overall lofty valuation poses a risk for long-term returns.
JPMorgan
For example, in a recent article , I wrote the following:
Stocks are lofty valued, which increases the odds of subdued long-term returns.
Elevated earnings growth may be a solution. However, can earnings grow at above-average rates when inflation is slowly but steadily pressuring the economy? Personally, I doubt it.
How sustainable is the AI trend? While I have zero doubt that AI is here to stay and a major disruption force for many years to come, I believe a lot of tech stocks have gotten ahead of themselves.
Read the full article on Seeking Alpha
For further details see:
Value Vs. Growth? Danaher Says Why Not Both?