10 Best Stocks to Buy for the Long-Term According to Charles Akre

8. Danaher Corporation (NYSE:DHR)

Akre Capital Management’s First Major Purchase: 2013

Akre Capital Management’s stake value: $493.60 million

Number of Hedge fund holders as of Q3: 98

Danaher Corporation (NYSE:DHR) is a healthcare company that designs, manufactures, and markets professional, medical, industrial, and commercial products and services. While the stock has been flat for the year, its diverse portfolio and strategic positioning affirm why it is one of the best stocks to buy for the long term.

The company is well-positioned within its sector thanks to its strong portfolio and exposure to diverse geographies and product categories. Danaher Corporation (NYSE:DHR)’s operations are spread across several crucial areas, such as bioprocessing, molecular diagnostics, and laboratory equipment. The company’s key bioprocessing business has already returned to growth by impressive third-quarter results delivered on October 22, 2024.

Revenues in the quarter were logged in at $5.8 billion, up 3% year-over-year and better than the $5.59 billion expected. Earnings per share came in at $1.71, topping consensus estimates of $1.57 a share. During the quarter, the bioprocessing unit bounced to low-single-digit growth. The segment has been under pressure due to destocking from larger clients following the COVID-19 pandemic.

Danaher Corporation (NYSE:DHR) is well poised to generate high single-digit core revenue growth and margin expansion heading into next year. Due to improved operational efficiency, it is also expected to convert 100% of its net income into free cash flow.

Here is what Madison Sustainable Equity Fund said about 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.”