Trade of the Day: Danaher Corporation (DHR)

Average volume has been 2.7 million shares over the past 30 days. Shares are up roughly 12% year to date as of close on Friday. The company has a market cap of $43.37 billion and a P/E ratio of 18.42. DHR’s success can be seen in numerous areas, such as its increasing revenue, secure financial position with practical debt levels, a steadily increasing stock price during the past year, superb record of EPS growth and increase in net income. Brian Drab stated that Danaher will continue to expand its sales in the years to come.

“Danaher currently generates 40% of its revenues from recurring aftermarket sales and believes this could expand to more than 50% over the next three to five years,” said Drab.

 All eyes will be on Danaher’s Q2 2013 Earnings release on July 15.

My Trade: Buying the June 62.5-65 Call Spread for $1.40

Risk: $140 per 1 lot

Reward: $110 per 1 lot

Breakeven: $63.90