Premium content from Motley Fool Stock Advisor Canada
Fellow Fools,
My team and I at Stock Advisor Canada have received our fair share of questions about the impact that tariffs will have on the companies we follow.
And like everyone else, in terms of specifics, we’ve no idea. What’s clear, though, is that we’re in another period where uncertainty reigns (which, frankly, is the norm when it comes to dealing with the future).
What’s important to keep in mind is that behind all those ever-changing stock tickers are living, breathing, adaptable businesses. Life will go on for these companies, and it’s on us as investors to see past this noise and realize that the lower stock prices go, the more opportunity is born.
To help keep you pointed in the right direction, we’re highlighting five companies that we think are worthy of putting new capital into right now.
Foolishly yours,
Iain Butler, CFA
Advisor, Stock Advisor Canada
“Best Buys Now” Pick #1:
Danaher (NYSE:DHR)
Fact: The life sciences/healthcare sector has been unkind to investors for several years now.
Fact: Quality companies abound in this space but are being shunned at the hands of the sector overall.
That pretty much sums up how we view the situation for Danaher (NYSE:DHR) shareholders these days.
Danaher owns 15 operating businesses, and we think taking a stake in this company is somewhat akin to owning a healthcare ETF. You’re buying into a provider of a diversified range of services across the life sciences spectrum. And at ~27 times forward earnings, which is in line with the market’s overall multiple, you’re not being asked to overpay for what historically has been a much better-than-average company focused on innovation in the biotechnology, life sciences, and diagnostics sectors.
Reverberations from the pandemic have impacted the industry overall, but management is confident that normalization is near complete. Order growth in the bioprocessing business, along with improved margins overall, are just two of the points mentioned along these lines.
Unlike other healthcare stocks, Danaher doesn’t offer the potential for moonshot returns. And yet unlike other healthcare stocks, this is very much a company that you can acquire today, tuck away and be very pleasantly surprised as it quietly compounds away over the next five years.
