101.87 -2.9 (-2.85%) Buy

Looking to invest in DHR? Look for alternatives because it underperformed

13 min read

DANAHER CORP significantly underperformed on Friday. It fell by -2.85% to close at 101.87. It is currently trading +10% above it's 52 week low of 92.16 and is down only -7% from it's 52 week high.

[Themes containing DHR]

DHR showed a bearish trend over the last 3 months. During this period DHR fell by -3.1% and saw a maximum drawdown of -12.33%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in DHR till volatility reduces and a clear trend emerges.


DHR has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 1 Jul, 2016 to 8 Aug, 2017. Over the last 2 years 11 months and 3 days, DHR underperformed the SP500 index on 47% days. Which indicates that on days DHR underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months DHR delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.0%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -3.54%) was on Thursday, 18 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -9.1% of investor capital.

During the last year DHR had 7 profitable months and 5 loss making months. DHR returned profits in fewer months than SP500 index. DHR significantly outperformed SP500 index in Nov 2018, when it returned +10.2% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. DHR had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both DHR and SP500 index significantly outperform during months when quarterly/annual results are announced.

Greed is not a financial issue. It's a heart issue.
-- Andy Stanley

DHR is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in DHR's volatility from 10 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that DHR has significant positive skewness in it's return distribution. This indicates that investors can expect DHR to recover from drawdowns quickly. Which makes DHR a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than DHR. Therefore, SP500 must receive a lower allocation than DHR in your portfolio. DHR usually has shorter drawdown period than the SP500 index.

Based on your interest in DHR you may find it interesting to know that HQY, AAXN and EHC are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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