Stock Analysis on Net

Danaher Corp. (NYSE:DHR)

Stock Price Trends


Summary

Key facts

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 10.02% per annum.
  • DHR price at the close of November 4, 2024 was $247.18 and was higher than the top border of the primary price channel by $36.11 (17.11%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 23.45% per annum.
  • DHR price at the close of November 4, 2024 was lower than the bottom border of the secondary price channel by $5.04 (2.00%). This indicates a possible reversal in the secondary trend direction.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of DHR price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: June 17, 2021
End date: December 12, 2023

a = 5.7582

b = -0.0003

s = 0.0611

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -10.02%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0611) – 1
= 27.66%

June 17, 2021 calculations

Top border of price channel:

Exp(Y406)
= Exp(a + b × X406 + 2 × s)
= Exp(a + b × 590 + 2 × s)
= Exp(5.7582 + -0.0003 × 590 + 2 × 0.0611)
= Exp(5.7097)
= $301.78

Bottom border of price channel:

Exp(Y406)
= Exp(a + b × X406 – 2 × s)
= Exp(a + b × 590 – 2 × s)
= Exp(5.7582 + -0.0003 × 590 – 2 × 0.0611)
= Exp(5.4655)
= $236.39

December 12, 2023 calculations

Top border of price channel:

Exp(Y1,032)
= Exp(a + b × X1,032 + 2 × s)
= Exp(a + b × 1,498 + 2 × s)
= Exp(5.7582 + -0.0003 × 1,498 + 2 × 0.0611)
= Exp(5.4471)
= $232.07

Bottom border of price channel:

Exp(Y1,032)
= Exp(a + b × X1,032 – 2 × s)
= Exp(a + b × 1,498 – 2 × s)
= Exp(5.7582 + -0.0003 × 1,498 – 2 × 0.0611)
= Exp(5.2029)
= $181.79

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 10.02% per annum.
  • DHR price at the close of November 4, 2024 was $247.18 and was higher than the top border of the primary price channel by $36.11 (17.11%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: April 25, 2023
End date: October 22, 2024

a = 4.5694

b = 0.0006

s = 0.0464

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 23.45%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0464) – 1
= 20.41%

April 25, 2023 calculations

Top border of price channel:

Exp(Y872)
= Exp(a + b × X872 + 2 × s)
= Exp(a + b × 1,267 + 2 × s)
= Exp(4.5694 + 0.0006 × 1,267 + 2 × 0.0464)
= Exp(5.3935)
= $219.96

Bottom border of price channel:

Exp(Y872)
= Exp(a + b × X872 – 2 × s)
= Exp(a + b × 1,267 – 2 × s)
= Exp(4.5694 + 0.0006 × 1,267 – 2 × 0.0464)
= Exp(5.2077)
= $182.68

October 22, 2024 calculations

Top border of price channel:

Exp(Y1,248)
= Exp(a + b × X1,248 + 2 × s)
= Exp(a + b × 1,813 + 2 × s)
= Exp(4.5694 + 0.0006 × 1,813 + 2 × 0.0464)
= Exp(5.7085)
= $301.43

Bottom border of price channel:

Exp(Y1,248)
= Exp(a + b × X1,248 – 2 × s)
= Exp(a + b × 1,813 – 2 × s)
= Exp(4.5694 + 0.0006 × 1,813 – 2 × 0.0464)
= Exp(5.5228)
= $250.34

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 23.45% per annum.
  • DHR price at the close of November 4, 2024 was lower than the bottom border of the secondary price channel by $5.04 (2.00%). This indicates a possible reversal in the secondary trend direction.
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