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DaVita HealthCare (DVA) Rises As Market Takes a Dip: Key Facts

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DaVita HealthCare (DVA - Free Report) ended the recent trading session at $146.71, demonstrating a +2.99% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.91%, and the technology-centric Nasdaq decreased by 0.82%.

Shares of the kidney dialysis provider have appreciated by 5.98% over the course of the past month, outperforming the Medical sector's gain of 1.66%, and the S&P 500's gain of 5.17%.

Investors will be eagerly watching for the performance of DaVita HealthCare in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.7, showcasing a 4.25% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.3 billion, up 3.5% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.76 per share and revenue of $13.48 billion. These totals would mark changes of +11.16% and +5.15%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for DaVita HealthCare. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DaVita HealthCare is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, DaVita HealthCare is at present trading with a Forward P/E ratio of 13.24. This expresses a discount compared to the average Forward P/E of 19.7 of its industry.

We can additionally observe that DVA currently boasts a PEG ratio of 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Outpatient and Home Healthcare industry currently had an average PEG ratio of 1.88 as of yesterday's close.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 24, placing it within the top 10% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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 Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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