DHR has shed over 20% in 2022
Danaher Corporation (NYSE: DHR) is a global science and technology conglomerate with more than 20 operating companies. DHR's family of brands hold positions in the health care, environmental, and applied end-markets. Danaher designs, manufactures, and markets professional, medical, industrial, and commercial products and services. DHR closed on Tuesday at $248.51.
On the charts, DHR has been an underperformer since hitting its series of record highs in the second-half of 2021. In fact, the equity has shed 24% year-to-date, and is seeing overhead pressure at the 10-, 80-, and 100-day moving averages. These three trendlines are representing both short- and long-term pressure.
However, Danaher stock is undoubtedly overvalued at a forward price-earnings ratio of 24.10 and a price-sales ratio of 6.12. DHR also provides very little security for long-term investors due to its weak balance sheet. Danaher holds just $2.59 billion in cash and a whopping $23.27 billion in total debt. In general, Danaher stock is a high-risk investment with very little reward potential due to the company’s relatively slow growth rate.
Meanwhile in the options pits, puts have been picked up at a much quicker-than-usual pace lately. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NVDA's 10-day put/call volume ratio of 2.21 stands higher than 79% of readings from the last 12 months.
Now looks like a solid opportunity to bet on the stock's next move with options. Danaher stock's Schaeffer's Volatility Scorecard (SVS) ranks at 86 out of 100, meaning the security has exceeded option traders' volatility expectations during the past year.