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Bull of the Day: DaVita Inc. (DVA)

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Key Takeaways

  • The dialysis services stock has soared 70% in 2026 to new highs after back-to-back strong reports.
  • DVA's EPS revisions earn it a Zacks Rank #1 (Strong Buy), and health and demographic trends are on its side.
  • DVA stock has soared 3,000% in the past 25 years, yet it is a great value stock.

DaVita Inc. (DVA - Free Report)  stock has soared over 70% in 2026, driven by back-to-back beat-and-raise performances.

The health care provider focused on kidney disease treatments is projected to double its earnings between 2023 and 2027. DVA broke out above its 2025 peaks to new all-time highs after its impressive first-quarter report on May 5.

Despite its market-crushing YTD performance and its stellar 25-year outperformance of the S&P 500 (+3,000% vs. the benchmark’s 550%), DaVita trades at value-stock levels and at a nearly 50% discount against its own highs in terms of forward earnings.

DVA’s value profile should be even more enticing since the broader market looks a bit bloated in the short run.

The medical care company’s upward earnings revisions earn it a Zacks Rank #1 (Strong Buy). The dialysis services company’s EPS outlook showcases its robust upside, driven by the fact that chronic kidney disease is on the rise.

Best Stocks to Buy in June and Hold Forever

DaVita is a dialysis services giant in the U.S. that’s expanding its global footprint. The firm aims to serve patients suffering from chronic kidney disease and beyond. For reference, dialysis is a treatment that filters waste and excess fluid from a person’s blood when their kidneys are failing.

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DaVita serves roughly 300K patients at over 3.2K outpatient dialysis centers. A large majority (~82%) of its dialysis centers are located in the U.S., with roughly 600 spread across 14 other countries.

The specialty health care provider holds a roughly ~38% share of the U.S. dialysis market, which is growing based on simple demographic trends that don’t show signs of reversing anytime soon. DVA is benefiting from both an aging and an increasingly unhealthy U.S. population.

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Image Source: Zacks Investment Research

Diabetes and high blood pressure are the leading causes of kidney failure, according to the CDC. Approximately 4 in 10 adults with diabetes have chronic kidney disease, while about 1 in 5 adults with high blood pressure suffer from CKD. Overall, more than 1 in 10 (14%) adults aged 18 or older (37 million people) were estimated to have CKD, according to the CDC. 

The Medical Care Services Stock’s Earnings Growth Outlook

DaVita more than doubled its adjusted earnings between 2018 and 2021. The company has kicked its bottom-line growth back into high gear after a 2022 setback, with it projected to more than double its adjusted EPS from $8.38 a share in 2023 to $18.37 a share in 2027.

The company is projected to expand its adjusted EPS by 40% in 2026 and another 22% next year to help it easily double its 2023 total. DVA is expected to grow its revenue by 5% in 2026 and 4% in 2027.

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Image Source: Zacks Investment Research

The dialysis company posted an impressive start to 2026, topping our Q1 estimate by 19% on May 5 and providing upbeat guidance.

DVA’s recent wave of upward revisions earn it a Zacks Rank #1 (Strong Buy), with its FY27 outlook up 9% since its release. The post-Q1 positivity extends the upward trend that began in early 2026, which ended a prolonged period of sideways revisions.

Longer-term investors should appreciate the chart below, highlighting DVA's impressive EPS growth trend.

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Image Source: Zacks Investment Research

Buy "Strong Buy" Stock DVA for Value, Growth, and Upside

DVA stock soared ~3,000% in the past 25 years to blow away the S&P 500’s ~550%. It has lagged the benchmark over the past 10 years, up just 150%.

But its 72% YTD run has DaVita trading at new all-time highs, breaking out meaningfully above its early 2025 peaks.

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Image Source: Zacks Investment Research

On the valuation front, the medical stock is trading at 45% discount to its highs and 15% below its median at 11.9X forward 12-month earnings.

DVA’s strong earnings outlook is highlighted by the fact it trades at a 30% discount to its highly-ranked Zacks Medical - Outpatient and Home Healthcare industry, even though it’s up 360% in the past 15 years vs. its industry’s 9%.

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Image Source: Zacks Investment Research

The stock might be a bit overheated from a technical standpoint right now, and possibly due for a cooldown, alongside the rest of the market.

Any near-term downturn would mark an even better opportunity for investors to buy DaVita stock.

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