Goldman Sachs’ Top Fund Manager Stock Picks: 25 Best Overweight Stocks

23. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders In Q2 2024: 83

Overweight Percentage: 0.09%

Danaher Corporation (NYSE:DHR) is a diversified medical products supplier that caters to the needs of the diagnostics, biotechnology, life sciences, and other industries. The key to the firm’s hypothesis, and one that can deliver either tailwinds or headwinds to the shares is its bioprocessing business. Danaher Corporation (NYSE:DHR) is one of the few large scale companies in the world, and with bioprocessing thought to lead to the creation of novel healthcare products such as gene therapies, the company has a wide moat in this sector. Danaher Corporation (NYSE:DHR) is an acquisition driven firm that relies on retained earnings to expand into new industries. These include potential treatments for Alzheimer’s and Duchenne dystrophy, and any blockbuster treatments created with Danaher Corporation (NYSE:DHR)’s help could lead to sizeable catalysts for the firm. On the flip side, with the narrative now dependent quite a bit on bioprocessing, any weakness on the inventory front or a demand slowdown can spell trouble for Danaher Corporation (NYSE:DHR)’s stock.

L1 Capital mentioned Danaher Corporation (NYSE:DHR) in its Q2 2024 investor letter. Here is what the fund said:

“We divested our remaining holding in Danaher. Danaher is one of the leading providers of equipment and services to the life sciences and diagnostics industries and is one the best run industrial businesses in the world. Many companies aim to emulate the ‘Danaher Business System’ of continuous improvement. We have no concerns with the quality of Danaher, the share price simply increased above our view of fair value. A core principle of our investment process is to maintain valuation discipline and we divested our investment, purely on valuation grounds. Danaher has moved to our Bench of potential future investments. Danaher’s share price has fallen around 10% since we sold our investment, and if it continues to drift down, we may have the opportunity to reinvest in a very high-quality business at a more attractive valuation.”