CDW Corp (CDW)
CDW Corporation, headquartered in Lincolnshire, Illinois, is a provider of technology products and services for business, government and education.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 2.89% per annum.
- CDW price at the close of July 25, 2024 was $228.62 and was higher than the top border of the primary price channel by $13.92 (6.48%).
- The secondary trend is increasing.
- The growth rate of the secondary trend is 20.98% per annum.
- CDW price at the close of July 25, 2024 was inside the secondary price channel.
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 CDW 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: February 10, 2021
End date: August 2, 2023
a = 5.0813
b = 0.0001
s = 0.0727
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 2.89%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0727) – 1
= 33.73%
February 10, 2021 calculations
Top border of price channel:
Exp(Y389)
= Exp(a + b × X389 + 2 × s)
= Exp(a + b × 565 + 2 × s)
= Exp(5.0813 + 0.0001 × 565 + 2 × 0.0727)
= Exp(5.2708)
= $194.57
Bottom border of price channel:
Exp(Y389)
= Exp(a + b × X389 – 2 × s)
= Exp(a + b × 565 – 2 × s)
= Exp(5.0813 + 0.0001 × 565 – 2 × 0.0727)
= Exp(4.9801)
= $145.49
August 2, 2023 calculations
Top border of price channel:
Exp(Y1,011)
= Exp(a + b × X1,011 + 2 × s)
= Exp(a + b × 1,468 + 2 × s)
= Exp(5.0813 + 0.0001 × 1,468 + 2 × 0.0727)
= Exp(5.3413)
= $208.78
Bottom border of price channel:
Exp(Y1,011)
= Exp(a + b × X1,011 – 2 × s)
= Exp(a + b × 1,468 – 2 × s)
= Exp(5.0813 + 0.0001 × 1,468 – 2 × 0.0727)
= Exp(5.0506)
= $156.12
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 2.89% per annum.
- CDW price at the close of July 25, 2024 was $228.62 and was higher than the top border of the primary price channel by $13.92 (6.48%).
Secondary Trend
Start date: April 22, 2022
End date: July 25, 2024
a = 4.5279
b = 0.0005
s = 0.0658
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 20.98%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0658) – 1
= 30.10%
April 22, 2022 calculations
Top border of price channel:
Exp(Y691)
= Exp(a + b × X691 + 2 × s)
= Exp(a + b × 1,001 + 2 × s)
= Exp(4.5279 + 0.0005 × 1,001 + 2 × 0.0658)
= Exp(5.1818)
= $178.01
Bottom border of price channel:
Exp(Y691)
= Exp(a + b × X691 – 2 × s)
= Exp(a + b × 1,001 – 2 × s)
= Exp(4.5279 + 0.0005 × 1,001 – 2 × 0.0658)
= Exp(4.9187)
= $136.82
July 25, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(4.5279 + 0.0005 × 1,826 + 2 × 0.0658)
= Exp(5.6123)
= $273.77
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.5279 + 0.0005 × 1,826 – 2 × 0.0658)
= Exp(5.3492)
= $210.43
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 20.98% per annum.
- CDW price at the close of July 25, 2024 was inside the secondary price channel.