10 Best Manufacturing Stocks To Buy Now

3. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders: 98 

Danaher Corporation (NYSE:DHR) is recognized as one of the top-tier manufacturing stocks due to its diversified portfolio and disciplined growth strategy. The company operates in key segments like life sciences, diagnostics, and environmental and applied solutions. This diversification shields Danaher Corporation (NYSE:DHR) from the cyclicality of any single market while fueling innovation in advanced manufacturing processes, a cornerstone of its competitive edge.

Danaher Corporation (NYSE:DHR) recently reported revenue near $24 billion. Danaher’s diversified portfolio across Biotechnology, Life Sciences, and Diagnostics contributed to its operating profit of $4.86 billion, with an operating margin of 20.4%. The company’s recurring revenue models, particularly in bioprocessing and molecular testing, have been pivotal in delivering consistent earnings. Additionally, operating cash flow totaled $6.7 billion, and free cash flow was $5.3 billion, demonstrating robust liquidity that supports both organic growth and strategic acquisitions. CEO Rainer M. Blair emphasized the company’s transformation into a focused life sciences and diagnostics innovator, positioning Danaher for higher long-term growth and margin expansion.

Institutional investors demonstrate significant confidence in Danaher Corporation (NYSE:DHR), with approximately 98 hedge funds in Insider Monkey’s Q3 2024 database holding positions in the stock, underscoring its appeal as a stable and innovative manufacturing leader.

On January 30, 2025, Patrick Donnelly, an analyst at Citigroup, maintained a “Buy” rating on Danaher Corporation (NYSE:DHR) but adjusted his price target from $285 to $265. This revision suggests an anticipated upside of approximately 28% from the current price of $206.76 as of Feb 10, 2025.