10 Best Medical Stocks to Buy According to Billionaires

4. Danaher Corporation (NYSE:DHR)

Number of Billionaire Investors: 18

Number of Hedge Fund Holders: 101

Danaher Corporation (NYSE:DHR) designs, manufactures, and markets professional, medical, industrial, and commercial products and services, making it a significant diagnostics stock. It operates through Diagnostics, Biotechnology, Life Sciences, and Environmental and Applied Solutions. Its Biotechnology segment offers a range of equipment and consumables for biological medicines. In contrast, the Life Diagnostics segment offers clinical instruments, devices, consumables, and other services for diagnosing and treating diseases.

Strong free cash flow generation is a competitive point for the company, as it generated $5.3 billion of free cash flow in fiscal 2024. This resulted in a free cash flow to net income conversion ratio of around 135%. Danaher Corporation (NYSE:DHR) is also active in the M&A domain, completing several strategic acquisitions throughout fiscal 2024 that brought innovative solutions to the company.

Danaher Corporation’s (NYSE:DHR) focus on high-margin bioprocessing in its life sciences sector is central to its growth strategy. The anticipated recovery in bioprocessing is expected to significantly increase the company’s earnings per share (EPS) in the coming years.

On April 7, Citi added Danaher Corporation (NYSE:DHR) to the firm’s Focus List while keeping a Buy rating on the shares with a $265 price target. The firm opined that it sees an attractive opportunity to enter the name as bioprocessing recovery is continually materializing. Danaher Corporation (NYSE:DHR) is the fourth best medical stock to buy according to billionaires. Madison Sustainable Equity Fund was also bullish on the company, and stated the following regarding Danaher Corporation (NYSE:DHR) in its Q3 2024 investor letter:

“Danaher Corporation (NYSE:DHR) released its 2024 Corporate Sustainability Report. It highlighted several milestones across its three pillars of sustainability (building the best team, innovating products that improve lives and the planet, and protecting the environment). The company has committed to setting greenhouse gas emission reduction targets in line with the Science Based Targets initiatives (SBTi), including reaching net-zero value chain emissions by 2050.”