In this article, we discuss 5 best low risk stocks to buy in 2022. If you want to see more stocks in this selection, check out 11 Best Low Risk Stocks To Buy In 2022.
5. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 82
Beta Value: 0.87
Danaher Corporation (NYSE:DHR) manufactures and markets professional, medical, industrial, and commercial products and services worldwide. The company operates through three segments – Life Sciences, Diagnostics, and Environmental & Applied Solutions. On October 20, Danaher Corporation (NYSE:DHR) posted Q3 non-GAAP earnings per share of $2.56 and a revenue of $7.66 billion, outperforming market consensus by $0.31 and $490 million, respectively. For the full year 2022, Danaher Corporation (NYSE:DHR) is raising its forecast for non-GAAP core revenue growth to the high-single digit percent range. Danaher Corporation (NYSE:DHR) is one of the best low risk stocks for 2022.
On October 21, JPMorgan analyst Rachel Vatnsdal maintained an Overweight rating on Danaher Corporation (NYSE:DHR) but lowered the price target on the stock to $315 from $350. The company posted “strong” Q3 results and reiterated its 2022 base business core growth guide, the analyst told investors. However, the primary takeaway from the earnings report was confusion around the bioprocessing growth framework for 2023 after mixed commentary around COVID-related customer dynamics, said the analyst. The analyst views the post-earnings selloff as dramatic.
According to Insider Monkey’s data, 82 hedge funds were long Danaher Corporation (NYSE:DHR) at the end of Q2 2022, compared to 83 funds in the last quarter. Ken Fisher’s Fisher Asset Management held the leading position in the company, comprising 3.8 million shares worth over $973 million.
Here is what Cooper Investors Global Equities Fund has to say about Danaher Corporation (NYSE:DHR) in its Q3 2022 investor letter:
“Spin-offs have been a valuable source of uncorrelated return for the portfolio since inception, whether investing in them directly or retaining ownership stakes in the spun-off assets of existing holdings. During the quarter Danaher announced the spin of its Environmental & Applied Solutions group (EAS) expected to close in late 2023. Danaher have been masters of the spin over the last decade and once again this one appears to make sense for both parties. The parent becomes a pure-play life sciences and diagnostics business with higher growth, margins and returns plus more M&A firepower. EAS, with leading positions in water quality through assets like Hach, ChemTreat and Trojan will, as a standalone business, have a more focused M&A strategy and represent an attractive water-related exposure for ESG focused funds. The spinco will still operate with the highly regarded Danaher Business System though (like ‘Fortive Business System’) we expect this to get rebranded while still delivering outstanding financial results.”
