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DaVita HealthCare (DVA) Stock Declines While Market Improves: Some Information for Investors

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In the latest trading session, DaVita HealthCare (DVA - Free Report) closed at $142.16, marking a -0.37% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.23%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, added 0.34%.

Prior to today's trading, shares of the kidney dialysis provider had gained 3.49% over the past month. This has outpaced the Medical sector's gain of 2.69% and lagged the S&P 500's gain of 3.96% in that time.

The investment community will be closely monitoring the performance of DaVita HealthCare in its forthcoming earnings report. The company is forecasted to report an EPS of $2.47, showcasing a 18.75% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.16 billion, reflecting a 5.43% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.62 per share and revenue of $12.74 billion, which would represent changes of +13.58% and +4.97%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for DaVita HealthCare. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.4% higher. DaVita HealthCare is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note DaVita HealthCare's current valuation metrics, including its Forward P/E ratio of 14.82. This indicates a discount in contrast to its industry's Forward P/E of 23.33.

It is also worth noting that DVA currently has a PEG ratio of 1.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Outpatient and Home Healthcare stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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