Danaher: One-Third Google's Earnings, One-Sixth the Price (DHR)

Eddy Elfenbein submits: Good news yesterday from Danaher (DHR). The company raised the low-end of its guidance. The original forecast for the first quarter was 59 cents to 64 cents a share. Now, it's 61 cents to 64 cents a share.

Don't overlook these items on your stocks. It's always good to see companies provide additional guidance or simply to "reaffirm" earlier forecasts.

Anyone can make a bold prediction at the beginning of the year, but better stocks usually provide more guidance between earnings reports. That's usually a good sign of a well-managed company.

Just a few weeks ago, Danaher reaffirmed its forecast of $3.02 to $3.12 a share for this year. That's about one-third of what Google will do, and DHR is going for one-sixth the price. (You do the math.)

Danaher is one of best run companies out there. Forbes agrees.

Twenty-five years ago, you could have picked up shares of Danaher for 32 cents a share. Now, it makes that in half a quarter. Since 1981, the stock is up roughly 19,000%.

Sometimes a stock chart says it all. Note the consistently rising earnings, and the falling P/E ratio. This chart should be in the Investor's Encyclopedia under "exactly what to look for."

DHR 3-yr Chart

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