In this article, we take a look at the 5 best diversified stocks to buy now. If you want to check out our detailed analysis on diversification strategy, go instead to 10 Best Diversified Stocks to Buy Now.
5. Danaher Corporation (NYSE:DHR)
Number of Sectors: 4
Number of Hedge Fund Holders: 87
Danaher Corporation is a globally diversified conglomerate encompassing four sectors including industrials, healthcare, consumer staples and utilities. The company’s business lines are mostly concentrated on diagnostics, environmental solutions and life sciences. In that regard, the conglomerate operates 28 companies working within the sub sectors.
Fundamentally, Danaher Corporation looks very good. The company has enough to cover its short-term obligations with a current ratio of 1.68. The debt to equity ratio of 0.51 also indicates that the company relies twice as much on equity than debt to run its operations. On April 22, Baird analyst Catherine Schulte lowered the price target on Danaher Corporation to $319 from $334 and kept an ‘Outperform’ rating on the shares.
When it comes to the hedge fund sentiment, here is what Cooper Investors Global Equities Fund had to say about Danaher Corporation in their 2022’s first quarter investor letter:
“This combination of attributes was not in favor 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.”
In the same quarter, Fisher Asset Management was the leading shareholder in Danaher Corp with equity worth $1 billion. Third Point followed with shares worth $730 million.