Dish Network stock (NASDAQ: DISH) dropped 14% in the last one month to $28 currently. The decline was in line with the sell-off in the technology and cable industry over recent weeks. But will the company’s stock continue its downward trajectory over the coming weeks, or is a recovery in the stock imminent?
According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price data for the last 20 years, returns for Dish Network stock average 1.5% in the next one-month (21 trading days) period after experiencing a 14% drop over the previous month (21 trading days). Notably, though, the stock is very likely to outperform the S&P500 over the next month (21 trading days), with an expected excess return of 0.6% compared to the S&P500.
But how would these numbers change if you are interested in holding Dish Network stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Dish Network stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!
MACHINE LEARNING ENGINE – try it yourself:
IF DISH stock moved by -5% over 5 trading days, THEN over the next 21 trading days, DISH stock moves an average of 1.3 percent, which implies an excess return of 1 percent compared to the S&P500.
More importantly, there is 55.5% probability of a positive return over the next 21 trading days and 53.4% probability of a positive excess return after a -5% change over 5 trading days.
Some Fun Scenarios, FAQs & Making Sense of DISH Network Stock Movements:
Question 1: Is the average return for DISH Network stock higher after a drop?
Answer:
Consider two situations,
Case 1: DISH Network stock drops by -5% or more in a week
Case 2: DISH Network stock rises by 5% or more in a week
Is the average return for DISH Network stock higher over the subsequent month after Case 1 or Case 2?
DISH stock fares better after Case 2, with an average return of -2.9% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 3.1% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as shown in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how DISH Network stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer:
If you buy and hold DISH Network stock, the expectation is over time the near term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For DISH stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
Question 3: What about the average return after a rise if you wait for a while?
Answer:
The average return after a rise is understandably lower than a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks – although DISH stock appears to be an exception to this general observation.
DISH’s returns over the next N days after a 5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
It’s pretty powerful to test the trend for yourself for Dish Network stock by changing the inputs in the charts above.
What if you’re looking for a more balanced portfolio instead? Here’s a high quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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October 08, 2020 at 02:26AM
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Hold Dish Network Stock For 6 Months To Beat The Market - Trefis
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