Danaher (DHR) Rebounded on Accelerated Demand

Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities experienced a strong momentum in 2025 and marked their second consecutive year of double-digit gains. The market witnessed one of the fastest recoveries following its dip into bear territory in April. Market leadership continued to narrow as Mega-cap stocks and AI-driven companies dominated the landscape. Against this backdrop, The Mar Vista’s U.S. Quality strategy reported +0.20% net-of-fees gains in Q4 2025 vs. the Russell 1000® Index’s +2.41% return and the S&P 500® Index’s +2.65% return. Stock selection in the communication services, consumer discretionary, and financials sectors was favorable to its performance, while stock selection in information technology, materials, and healthcare detracted from its performance. The letter also shared that, in 2026, markets will need to strike a balance between strong fundamentals and increasing economic uncertainties. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Mar Vista U.S. Quality Strategy highlighted stocks such as Danaher Corporation (NYSE:DHR). Headquartered in Washington, the District of Columbia, Danaher Corporation (NYSE:DHR) is a leading life science and diagnostic company. On January 13, 2026, Danaher Corporation (NYSE:DHR) stock closed at $235.56 per share. One-month return of Danaher Corporation (NYSE:DHR) was 5.81%, and its shares lost 1.01% of their value over the last 52 weeks. Danaher Corporation (NYSE:DHR) has a market capitalization of $168.673 billion.

Mar Vista U.S. Quality Strategy stated the following regarding Danaher Corporation (NYSE:DHR) in its fourth quarter 2025 investor letter:

"After lagging through the first three quarters of 2025, Danaher Corporation's (NYSE:DHR) stock rebounded during Q4 as bioprocessing, life science, and diagnostics demand continued to recover from a cyclical trough. On the 3Q25 call, management established conservative 2026 growth expectations. Revenue is expected to continue to lag long-term trends at 3-6% but improve throughout the year. Operating leverage should drive high single digit EPS growth. The company’s strong balance sheet and capital deployment strategy should provide accretive growth for the foreseeable future."

Danaher Corporation (NYSE:DHR) is in 27th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 117 hedge fund portfolios held Danaher Corporation (NYSE:DHR) at the end of the third quarter, up from 115 in the previous quarter. The third quarter 2025 sales of Danaher Corporation (NYSE:DHR) were $6.1 billion, representing a 3% core revenue growth. While we acknowledge the potential of Danaher Corporation (NYSE:DHR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Danaher Corporation (NYSE:DHR) and shared the list of best large cap stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.