Where is Danaher Corporation (DHR) Headed?

Danaher Corporation (NYSE:DHR) is one of the best strong buy healthcare stocks to invest in. Danaher Corporation (NYSE:DHR) announced on February 24 that its Board of Directors approved a regular quarterly cash dividend of $0.40 per share of its common stock, payable on April 24, 2026, to holders of record on March 27, 2026. In another development, the company announced on February 17 a definitive agreement to acquire Masimo Corporation, which is a leading specialty diagnostics provider of pulse oximetry and other patient monitoring solutions, primarily in acute care settings.

The terms of the agreement entail the acquisition of all of the outstanding shares of Masimo common stock by Danaher Corporation (NYSE:DHR) for $180 per share in cash, or a total enterprise value of approximately $9.9 billion, including assumed indebtedness and net of acquired cash. Management stated that this represents a transaction multiple of around 18x estimated 2027 EBITDA, or 15x 2027 estimated EBITDA, including the full benefit of expected annual synergies.

Masimo would operate as a standalone operating company within Danaher’s Diagnostics segment upon the completion of the transaction, along with Radiometer, Leica Biosystems, Cepheid, and Beckman Coulter Diagnostics. Danaher Corporation (NYSE:DHR) stated that Masimo is anticipated to deliver high-single-digit core revenue growth over the long-term, expediting the company’s Diagnostics segment core revenue growth profile.

Danaher Corporation (NYSE:DHR) designs, manufactures, and markets professional, medical, industrial, and commercial products and services, making it a significant diagnostics stock. It operates through Diagnostics, Biotechnology, Life Sciences, and Environmental and Applied Solutions. Its Biotechnology segment offers a range of equipment and consumables for biological medicines. In contrast, the Life Diagnostics segment offers clinical instruments, devices, consumables, and other services for diagnosing and treating diseases.

While we acknowledge the potential of 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.

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