Danaher Stock: Is DHR Underperforming the Healthcare Sector?

DHR -1.00% XLV -0.22%

With a market cap of $163 billion, Danaher Corporation (DHR) is a global science and technology innovator that designs, manufactures, and markets professional, medical, research, and industrial products across the United States, China, and worldwide. Operating through its Biotechnology, Life Sciences, and Diagnostics segments, the company provides advanced tools, technologies, and services that support healthcare, scientific research, and industrial applications.

Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Danaher fits this criterion perfectly. Headquartered in Washington, the District Of Columbia, Danaher has built a strong presence in diverse industries, partnering with leading organizations to drive innovation in diagnostics, therapeutics, and applied solutions.

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Shares of the industrial and medical device maker have declined 10.6% from its 52-week high of $258.23. Over the past three months, its shares have increased 11.1%, underperforming the broader Health Care Select Sector SPDR Fund’s (XLV) 16.6% gain during the same period.

Longer term, DHR stock is up marginally on a YTD basis, lagging behind XLV's 15.4% return. Moreover, shares of the company have dipped 2.9% over the past 52 weeks, compared to XLV’s 9.2% rise over the same time frame.

The stock has been trading above its 50-day and 200-day moving averages since October.

Danaher shares climbed 5.9% on Oct. 21 after the company reported better-than-expected Q3 2025 adjusted EPS of $1.89 and revenue of $6.05 billion. Investor sentiment was further boosted by year-over-year revenue growth of 4.5% to $6.1 billion, strong bioprocessing momentum, and better-than-anticipated respiratory revenue at Cepheid. Additionally, Danaher maintained its full-year adjusted EPS outlook of $7.70 - $7.80.

However, DHR stock has performed weaker than its rival, IDEXX Laboratories, Inc. (IDXX). IDXX stock has climbed 85.4% YTD and 78.9% over the past 52 weeks.

Despite the stock’s weak performance over the past year, analysts remain bullish about its prospects. The stock has a consensus rating of “Strong Buy” from 21 analysts in coverage, and the mean price target of $251.68 is a premium of 9.1% to current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com