5 Best Water Stocks to Buy Now

1. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders: 83

Danaher Corporation (NYSE:DHR) is a Washington, D.C-based diversified conglomerate. The company has a diverse portfolio of water quality optimization entities under the Environmental and Applied Solutions segment of the business that plays an integral role at every stage of the water cycle.

Through one of its subsidiaries, Pall Corporation, Danaher Corporation (NYSE:DHR) intends to be a key player in the Legionella testing market. The testing market is expected to compound annually by 8.2% from 2022 to 2027 to $439 million, according to Illinois-based research firm MarketsandMarkets. The bacteria are known for causing Legionnaires’ disease, a severe form of pneumonia that causes 8,000 to 18,000 deaths in the US annually.

Danaher Corporation (NYSE:DHR) has been termed a great stock to hold during economic uncertainty by Brendan Leucke at Bernstein. On August 16, Leucke gave Danaher Corporation (NYSE:DHR) stock a target price of $340 along with an Outperform rating. Danaher Corporation (NYSE:DHR) offers strong business fundamentals and has an annual forward dividend yield of 0.35% as of August 24.

Cooper Investors shared its stance on Danaher Corporation (NYSE:DHR) in its Q1 2022 investor letter. Here’s what the firm said:

“This combination of attributes was not in favour during a quarter where the market rotated into larger, more traditional index heavyweights that, while growing more slowly and generating lower returns on capital, typically trade on lower headline multiples. In Healthcare for example, we saw portfolio holdings Danaher fall 10-15% in the quarter. Given the relative business quality and growth prospects for a life sciences capital allocator champion like Danaher versus a large diversified pharma company, we think this period of underperformance is likely more a blip than a trend.”

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