10 Best Healthcare Stocks to Buy According to Hedge Funds

4. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders: 98

Danaher Corporation (NYSE:DHR) designs and sells a wide range of products and services for various sectors including medical, industrial, commercial, and biotechnology.

In Q1 2024, Danaher Corporation (NYSE:DHR) reported an EPS of $1.92, surpassing estimates of $1.71. Meanwhile, the revenue of $5.8 billion also exceeded expectations of $5.62 billion. The company has managed to beat EPS estimates in the last 4 quarters.

Analysts are bullish on Danaher Corporation (NYSE:DHR) due to favorable consumer trends, Q1 results exceeding expectations, and the company’s reputation as a sector leader in mergers and acquisitions. Danaher Corporation (NYSE:DHR) has received a consensus rating of “Moderate Buy.”

Meanwhile, the 12-month price target for Danaher Corporation (NYSE:DHR) averages $276.64, representing an 8.81% upside from its last price. The price targets range from a high of $297 to a low of $235. The company ranks fourth on our list of the best healthcare stocks to buy now.

Here’s what RGA Investment Advisors said about Danaher Corporation (NYSE:DHR) in its Q1 2024 investor letter:

“In our Q3 2023 commentary, we featured a section on our investment in Danaher Corporation (NYSE:DHR) entitled “Purity in the Crown Jewel of Bioprocessing.” Specifically, we were speaking to Cytiva, Danaher’s bioprocessing business formed by the merger of Pall Corp and GE’s bioprocessing division. We will not repeat the features that attract us to bioprocessing in general, nor the elements of timeliness, though we will emphasize that our confidence in timeliness has actually increased since writing that piece. While Danaher has performed admirably ever since, its peer Sartorius, which was referenced by labeling bioprocessing “an oligopolistic market, with a small number of critical players and extremely high barriers to entry.”