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DaVita HealthCare (DVA) Outperforms Broader Market: What You Need to Know

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DaVita HealthCare (DVA - Free Report) ended the recent trading session at $137.84, demonstrating a +1.26% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.94%. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 1.52%.

Coming into today, shares of the kidney dialysis provider had lost 6.39% in the past month. In that same time, the Medical sector gained 4.95%, while the S&P 500 gained 1.67%.

The investment community will be closely monitoring the performance of DaVita HealthCare in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.7, marking a 4.25% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.3 billion, showing a 3.5% escalation compared to the year-ago quarter.

DVA's full-year Zacks Consensus Estimates are calling for earnings of $10.76 per share and revenue of $13.48 billion. These results would represent year-over-year changes of +11.16% and +5.15%, respectively.

It is also important to note the recent changes to analyst estimates for DaVita HealthCare. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, DaVita HealthCare boasts a Zacks Rank of #3 (Hold).

Investors should also note DaVita HealthCare's current valuation metrics, including its Forward P/E ratio of 12.66. This signifies a discount in comparison to the average Forward P/E of 20.85 for its industry.

Investors should also note that DVA has a PEG ratio of 0.94 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Outpatient and Home Healthcare industry currently had an average PEG ratio of 1.93 as of yesterday's close.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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