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Why Diversified Healthcare (DHC) Dipped More Than Broader Market Today

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Diversified Healthcare (DHC - Free Report) closed the latest trading day at $2.59, indicating a -1.15% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, added 0.17%.

Coming into today, shares of the residential care real estate investment trust had lost 10.88% in the past month. In that same time, the Finance sector gained 4.92%, while the S&P 500 gained 5.34%.

Analysts and investors alike will be keeping a close eye on the performance of Diversified Healthcare in its upcoming earnings disclosure. On that day, Diversified Healthcare is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 80%. Simultaneously, our latest consensus estimate expects the revenue to be $371.42 million, showing a 7.34% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.15 per share and a revenue of $1.5 billion, representing changes of -11.76% and +6.49%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Diversified Healthcare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 16.67% lower. Diversified Healthcare presently features a Zacks Rank of #4 (Sell).

Looking at valuation, Diversified Healthcare is presently trading at a Forward P/E ratio of 17.47. For comparison, its industry has an average Forward P/E of 11.64, which means Diversified Healthcare is trading at a premium to the group.

The REIT and Equity Trust - Other industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 146, positioning it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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