Quest Diagnostics Incorporated (DGX)
Quest Diagnostics is an American clinical laboratory. A Fortune 500 company, Quest operates in the United States, Puerto Rico, Mexico, and Brazil. Quest also maintains collaborative agreements with various hospitals and clinics across the globe.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is decreasing.
- The decline rate of the primary trend is 2.39% per annum.
- DGX price at the close of July 26, 2024 was $145.59 and was higher than the top border of the primary price channel by $1.49 (1.03%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 41.44% per annum.
- DGX price at the close of July 26, 2024 was inside the secondary price channel.
- 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 DGX 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: July 19, 2021
End date: May 9, 2024
a = 4.9750
b = -0.0001
s = 0.0583
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0001) – 1
= -2.39%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0583) – 1
= 26.28%
July 19, 2021 calculations
Top border of price channel:
Exp(Y497)
= Exp(a + b × X497 + 2 × s)
= Exp(a + b × 721 + 2 × s)
= Exp(4.9750 + -0.0001 × 721 + 2 × 0.0583)
= Exp(5.0437)
= $155.05
Bottom border of price channel:
Exp(Y497)
= Exp(a + b × X497 – 2 × s)
= Exp(a + b × 721 – 2 × s)
= Exp(4.9750 + -0.0001 × 721 – 2 × 0.0583)
= Exp(4.8104)
= $122.79
May 9, 2024 calculations
Top border of price channel:
Exp(Y1,204)
= Exp(a + b × X1,204 + 2 × s)
= Exp(a + b × 1,746 + 2 × s)
= Exp(4.9750 + -0.0001 × 1,746 + 2 × 0.0583)
= Exp(4.9757)
= $144.85
Bottom border of price channel:
Exp(Y1,204)
= Exp(a + b × X1,204 – 2 × s)
= Exp(a + b × 1,746 – 2 × s)
= Exp(4.9750 + -0.0001 × 1,746 – 2 × 0.0583)
= Exp(4.7424)
= $114.71
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 2.39% per annum.
- DGX price at the close of July 26, 2024 was $145.59 and was higher than the top border of the primary price channel by $1.49 (1.03%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: February 1, 2024
End date: July 26, 2024
a = 3.2457
b = 0.0009
s = 0.0222
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0009) – 1
= 41.44%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0222) – 1
= 9.28%
February 1, 2024 calculations
Top border of price channel:
Exp(Y1,136)
= Exp(a + b × X1,136 + 2 × s)
= Exp(a + b × 1,648 + 2 × s)
= Exp(3.2457 + 0.0009 × 1,648 + 2 × 0.0222)
= Exp(4.8556)
= $128.46
Bottom border of price channel:
Exp(Y1,136)
= Exp(a + b × X1,136 – 2 × s)
= Exp(a + b × 1,648 – 2 × s)
= Exp(3.2457 + 0.0009 × 1,648 – 2 × 0.0222)
= Exp(4.7668)
= $117.54
July 26, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(3.2457 + 0.0009 × 1,824 + 2 × 0.0222)
= Exp(5.0228)
= $151.83
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(3.2457 + 0.0009 × 1,824 – 2 × 0.0222)
= Exp(4.9340)
= $138.93
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 41.44% per annum.
- DGX price at the close of July 26, 2024 was inside the secondary price channel.