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Danaher Corporation (DHR)

Danaher stock forecast: buy or sell

Close on Oct 23rd, 2020
$232.66 -0.56%
3 months performance
17.20%
Published: October 23rd, 2020 - 4.41pm EDT

Danaher stock outlook

  • After hitting all-time highs today, Danaher closed at $232.66 merely moving a -0.56%
  • Robert W. Baird and Royal Bank of Canada published bullish ratings for Danaher today, with an average target of $262.50
  • Yesterday, Danaher posted its Q3 earnings report
  • Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide.

Important note:
The comments written in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this paper does not have an understanding of the individual positions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for learning reasons only

Danaher stock charts

Should I buy Danaher stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $DHR stock a buy?

Currently, Danaher stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $DHR will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Danaher stock?

When you own stock shares with some profit, it's really difficult to decide the best moment to sell and get your benefits. In the same way as when we have to buy shares, deciding when is appropiate to sell is not a random decision, and we must adhere our own trading style. Our trading system selects very simple strategies to guide us on when is the best time to sell our shares. Be aware that these strategies are not intended for selling short Danaher stock

A golden rule is that you should not keep a trade that yields higher than expected losses by the time of purchase. The moment to sell shares must always be ruled by the stop-loss (automatic or manual)

Is it time to sell Danaher stock?

In the current situation of Danaher there is not any eligible sell setup, so Danaher stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell Danaher stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 3 brokerage ratings were published for Danaher. General sentiment is bullish, with 3 out of 3 publishing positive forecasts

Danaher ratings

Brokerage firmRating
Sep 29th, 2020
Wells Fargo & Company Strong buy
Oct 23rd, 2020
Robert W. Baird Buy
Oct 23rd, 2020
Royal Bank of Canada Buy

Technical analysis

Since last March, Danaher has been drawing an uptrend that so far marked a gorgeous 95.18%. The price line shows higher highs and higher troughs, and along the way gave some buy points for those who wanted to invest. Latest low was in early September, when price bounced at $192.34. On September 29, Danaher broke out above its last top ($210.39) giving a good buy point that resulted in a 10.59% gain

$DHR at new Highs

Today, Danaher marked all-time highs (ATH) again at $236.55. Stock smashed new all-time highs 4 times in the last 10 sessions

SMAs overview

A favorite tool of many traders are the moving averages, that easily show trend momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. You can found more about Moving Averages from sources like Wikipedia and Investopedia

DHR SMAs chart

Supports and resistances

Technical analysts use support and resistance levels to find price points on a chart that may act as glass ceiling, preventing the price of a stock to move up or down. Supports are levels where the price may stop as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue descending until meeting another support level. On the contrary, a resistance level is where the price tends to find opposition as it moves up. Likewise, the price is more liable to "rebound" at this level, and if it finally ruptures this level, the price will rally easily until it hits the next resistance

Price is at all-time highs and there are not upper resistances.

The current supports are:

  • S1: $210.39 (-9.57% below)
  • S2: $192.34 (-17.33% below)
  • S3: $170.31 (-26.8% below)
  • Bollinger bands

    The so-called Bollinger bands are a widely known technical strategy designed by John Bollinger. In essence, the Bollinger Bands are lines that move around a moving average and vary the distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band yesterday, the price has corrected downwards by 1.25%. The price is moving very close to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell point, as price can trade in these levels for many days and weeks

    DHR RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to chart the current and previous weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    Relative strength (RSI) climbed over the 70 level today, marking a reading of 70.48. Breaking through above the overbought zone is not a sell signal, as stocks can rally during several weeks being in the overvalued zone

    DHR RSI chart

    Earnings and financials

    Yesterday, Danaher Corporation ($DHR) posted EPS for fiscal third-quarter that highly surpassed Market expectations. Quarterly EPS was $1.72 per share instead of $1.36. This Q3 report means an earnings surprise of 26.47%. Predicted turnover for this quarter was $5.5 billion but Danaher slightly improved by 6.77%, reporting $5.9 billion.

    Compared to the same quarter one year ago, EPS was $1.16, so reported EPS is a improvement of 48.28%.

    Danaher ($DHR) presents earnings report next January 2021. Market estimates an earnings a share of $1.36, compared to previous quarter that was $1.72.

    DHR revenues and profits chart