We recently published our article 10 Healthcare and Insurance Stocks to Buy as Democrats Take Control. In this piece, we will talk about the top 5 Healthcare and Insurance Stocks to Buy as Democrats Take Control.
5. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 108
Supplied Share-Price Snapshot: $237.73, up 0.69%
Strong Cash Generation Meets an Uneven Demand Recovery
Danaher Corporation (NYSE: DHR) provides exposure to healthcare through the instruments, technologies, and services used in biotechnology manufacturing, scientific research, and diagnostics. Its commercial performance depends heavily on customers’ laboratory budgets, manufacturing activity, and testing demand. That gives the company a different relationship with the post-election healthcare outlook than insurers or hospital operators directly exposed to coverage and reimbursement decisions.
Third-quarter 2026 revenue increased 8.5% year over year to $6.6 billion, while net earnings rose 34.5% to approximately $1.2 billion, or $1.71 per diluted share. Cash generation was another notable feature: operating cash flow reached $1.9 billion, and non-GAAP free cash flow totaled $1.6 billion. Those figures provide tangible evidence of financial progress and resources that can support investment and other capital-allocation priorities.
The underlying sales picture requires closer inspection. Non-GAAP core revenue increased 3.0%, compared with 5.5% when respiratory revenue was excluded. The gap between reported and core growth illustrates the importance of separating underlying demand from acquisitions, currency movements, and other adjustments. Diagnostics also showed a weaker core performance than its headline sales growth suggested. For investors evaluating life sciences stocks, the more useful test is whether improving demand becomes broad and durable across the portfolio. Strong cash generation supports the business, but the recovery still needs confirmation from sustained underlying growth.
Ranking Rationale
Danaher Corporation (NYSE: DHR) ranks fifth with 108 hedge fund holders. Its cash generation and exposure to essential laboratory and bioprocessing activity support its inclusion, while the difference between reported and core growth argues for a selective reading of the recovery.
