5 Best Healthcare Stocks to Buy in 2022 According to Hedge Funds

4. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders: 83

Danaher Corporation (NYSE:DHR) is a medical company which makes and sells medical, industrial and commercial products around the globe. The company shares were reported in the portfolios of 83 hedge funds at the close of the first quarter, holding stakes with a collective price tag of $6.18 billion. Billionaire Ken Fisher was the largest shareholder of Danaher Corporation (NYSE:DHR) in the first quarter of 2022, with his Fisher Asset Management holding a $1.09 billion stake in the company.

Baird analyst Catherine Schulte in April gave Danaher Corporation (NYSE:DHR) an unchanged ‘Outperform’ rating, and slashed the price target to $319 from $334. She noted that the company management reiterated 2022 core growth guidance citing strong underlying demand, despite inflationary, geopolitical and supply chain issues. The analyst is confident the company can operate through these issues, and favors its diversified operating model.

For Q1 2022, Danaher Corporation (NYSE:DHR) registered a revenue of $7.69 billion, beating Street forecasts by $159.1 million and growing 12.1% year-on-year. The company posted earnings per share of $2.76, beating estimates by $0.10.

Cooper Investors, an investment firm, talked about Danaher Corporation (NYSE:DHR) in its Q1 2022 investor letter. The fund 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.”