5 Safe Stocks to Buy According to Hedge Funds

In this article, we take a look at the 5 safe stocks to buy according to hedge funds. If you want to read our detailed analysis of safe stocks, go directly to see the 12 Safe Stocks to Buy According to Hedge Funds.

5. Danaher Corporation (NYSE:DHR)

Beta Value: 0.82
Number of Hedge Fund Holders: 89

Danaher Corporation (NYSE:DHR) is a medical corporation that develops, produces, and sells professional, medical, industrial, and commercial products and services. It works in three divisions: Life Sciences, Diagnostics, and Environmental & Applied Solutions.

Danaher Corporation (NYSE:DHR) has a consensus recommendation of “Moderate Buy” from 12 Wall Street analysts, which is based on 8 buy ratings, 4 hold ratings, and 0 sell opinions. Danaher Corporation (NYSE:DHR)’s Forward P/E ratio is 24.33. Danaher is selling at a premium to the group compared to its industry, which has an average Forward P/E of 12.79.

According to Insider Monkey’s data, 89 hedge funds were bullish on Danaher Corporation (NYSE:DHR) at the end of third quarter of 2022, compared to 82 funds in the second quarter. Fisher Asset Management is the most significant position holder in Danaher Corporation (NYSE:DHR), with 3.94 million shares worth $1.02 billion.

Here is what Stewart Asset Management, an investment management firm, said about Danaher Corporation (NYSE:DHR) in its Q3 2022 investor letter:

“We also need to point out one global consequence of the rapid rise in interest rates: an irrepressibly strong dollar. This hurts the reported earnings of U.S. companies who sell their goods and services overseas. Foreign currency earnings translate into fewer dollars and thus lower earnings. Most of the companies in your portfolios gain a notable amount of earnings from their international operations. While the strength or weakness of a currency doesn’t change the quality of a business or its longer-term earnings power, it can change the reported earnings of a company over short periods of time. It is difficult to forecast this effect accurately because many of our companies manufacture where they sell, which to some extent dulls the sharp negative effect of a surging dollar. Danaher (NYSE:DHR), among others, is a good example.”