Danaher's share price sits around $276.76. It's approaching the key resistance at $281.65, will the barrier be broken after the earnings release tomorrow?

Overview

The Washington, D.C.-based Danaher Corporation is a multinational conglomerate of American origin. Professional, medical, industrial, and commercial goods and services are designed, produced, and sold by the business. Life Sciences, Diagnostics, and Environmental & Applied Solutions are the three platforms that the firm focuses on.

Financials

Looking at the income statement, the financials of Danaher seem on the positive side of the spectrum. The jump in revenue by 24% and gross profit by 30% demonstrate growth, and the rise in EBITDA and net income (post-tax and expenses) almost doubled the earnings for the fiscal year that ended 31^st of December, 2021. EPS came in at $8.77 in 2021, a 43% growth YoY. Over to the balance sheet, there was a drop in current assets as cash on hand value fell by $3.5bn from 2020. Nevertheless, total assets still grew to $83bn from $76bn and total liabilities only grew by $2bn. This led to the $6bn advance in total equity.

Technicals

From a technical outlook, its current share price sits around $276.76 a share. Applying the Fibonacci retracement to the chart, on the daily timeframe, the stock is approaching the key resistance above at $281.65 (100% Fib). A break above this resistance could see its price climb towards the 127.2% Fib level ($292.27). Towards the downside, support sits at $272.44 (76.4% Fib) then at $266.74 (61.8% Fib) and then at $262.14 (50% Fib). A slip below the 50% Fib may see a further decline towards the 38.2% ($257.52) and 23.6% ($251.83) Fibonacci retracements. MACD and RSI are both positive, as the MACD is above the signal line and RSI reads 60.

Summary

Overall, Danaher’s stock seems to have found some consolidation and a road to recovery could be forming. Especially after the heavy losses which were seen in 2022. The financials are pretty solid and the technicals only suggest further upside, potentially a bullish trend is shaping. However, investors are waiting for the quarterly earnings (due tomorrow - 24/01/2022) to gauge a much better outlook for Q1 and Q2 of 2023. A positive report could really set the sentiment straight.