⁠Dimitry Nakhla | Babylon Capital®
$DHR sell off continues, with today’s trading volume 73% higher than average

Let’s see if $DHR gets to my accumulation price target of $184💵 (-9.5% away🤞🏽🧬) https://t.co/KxT6MHtTUZ

Danaher $DHR stock is down -30% from its highs, falling from $294 to $206 📉

Is $DHR a good investment today?

In the first photo you’ll notice $DHR multiple expanded nearly 40% in the last 10 years, contributing to the company’s ~146% price return (yes, some businesses were spun off, & the value of those count towards the total return as well)

From 2019-2022, $DHR multiple expanded rapidly, reaching over 30x and this was largely due to forecasted aggressive earnings growth

Moving forward though, EPS growth has been lackluster (2022-2025E) & you can see why $DHR multiple contracted from 35x to 27x today

Yes, $DHR is a great business & the $DHR corporate culture is excellent. But all of that doesn’t warrant a purchase of the company IF the multiple, relative to its growth rate (among several other things) isn’t attractive enough to provide a margin of safety and attractive returns moving forward

Today at $206💵, $DHR trades for 27x NTM with a PEG of 2.22x so I believe $DHR is fairly valued here

At 27x NTM, investor returns will depend heavily on EPS growth (which is fine), yet you likely won’t get the same kind of multiple expansion you did in the last decade (unless EPS growth estimates are revised substantially higher)

This is why I made the argument, less than months ago, that I prefer $TMO to $DHR because $TMO traded -24% cheaper than $DHR even though $TMO is expected to grow earnings at a higher rate than $DHR over the next 3 years

Since then? $TMO +10% YTD 📈 while $DHR -10% YTD 📉

I’d consider $DHR a good purchase closer to $184💵 or at ~24x NTM EPS & an excellent purchase closer to $168💵 or at ~21x NTM EPS (although I wouldn’t count on it reaching that level)

At $184💵, I’ll have some margin of safety with the potential for slight margin expansion & at $168💵 it’s a steal

I’d likely look to add in tranches, building 70% of the position near $184💵 and 30% if I’m lucky enough to see $168💵 - Dimitry Nakhla | Babylon Capital®
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⁠Quiver Quantitative
RT @InsiderRadar: 🚨BREAKING: New CEO Insider Purchase

The CEO of $MTCH has just reported purchasing $2M of the company's stock, his first insider purchase since taking over as CEO last week.

One of the company's directors also reported purchasing $100k of stock, increasing his ownership stake by 10%.
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⁠Stock Analysis Compilation
Maran Capital on Clarus Corporation $CLAR US

Thesis: Clarus is undervalued with a strong balance sheet, accelerating profitability, and trading at significantly lower multiples compared to peers.

(Extract from their Q4 letter) https://t.co/3nO5Ac1cCA
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⁠InsideArbitrage
RT @AsifSuria: After we received this wonderful shoutout from Turtle Capital last week, we recorded the fifth episode of our podcast with renewed enthusiasm.

We also considered renaming it "The Elliott Management Tracking Show" considering how frequently we are discussing the activist firm's actions.

This week it is on account of Elliott's battle with Emerson Electric $EMR to get a higher price for Emerson’s $265 per share all cash acquisition of Aspen Technology $AZPN

And because Honeywell finally decided to act on Elliott's proposed playbook of separating into multiple companies. $HON

shoutout @AsifSuria for this awesome special sits podcast he’s doing with his daughter while she attends UCLA … v cool to do that together, and content is great

Poison Pills in Hostile Acquisitions - The Special Situations Report Epi... https://t.co/gCUw3pZKfC via @YouTube - Turtle Capital
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⁠Dimitry Nakhla | Babylon Capital®
RT @DimitryNakhla: 10 Quality Stocks Trading PEG <2.00x 📈

☁️ microsoft $msft
•ntm p/e: 29.70x
•peg: 1.86x

🤖 nvidia $nvda
•ntm p/e: 33.07x
•peg: 1.85x

🫱🏼‍🫲🏻 mercadolibre $meli
•ntm p/e: 56.43x
•peg: 1.61x

📦 amazon $amzn
•ntm p/e: 36.47x
•peg: 1.61x

📸 meta platofrms $meta
•ntm p/e: 28.31x
•peg: 1.51x

✈️ booking holdings $bkng
•ntm p/e: 24.19x
•peg: 1.50x

🖨️ asml holding $asml
•ntm p/e: 29.29x
•peg: 1.44x

🖱️ alphabet $goog $googl
•ntm p/e: 20.82x
•peg: 1.42x

🧬 novo nordisk $nvo
•ntm p/e: 22.62x
•peg: 1.20x

🚙 uber $uber
•ntm p/e: 22.71x
•peg: 1.05x

*peg calculated by taking 2026 - 2027 eps estimates since ntm p/e used (which is based on 2025 eps estimates)

**$nvda ntm based on 2026 eps estimates since fy ends january 2026, 2027 - 2028 eps estimates used for peg)

#stocks #investing
_______

*data from tikr
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⁠Read
RT @macaronicapital: @jbulltard1 $oxy https://t.co/A5SqcmjYOB
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⁠Read
RT @wallstengine: OpenAI made its Super Bowl debut with a $14 million ad for ChatGPT. https://t.co/NbUhaPNP4t
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⁠Capital Employed
Currently compiling the next Best Stock Pitches newsletter, to be published on Friday.

Any excellent stock pitches we should be reading?
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⁠Finding Compounders
Li Lu has held a single company’s stock for over 22 years

During this period , the stock has dropped more than 50% up to 6 times !

“Only then is your circle of competence truly tested “ https://t.co/Qshzn309JJ
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