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DaVita HealthCare (DVA) Gains As Market Dips: What You Should Know

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DaVita HealthCare (DVA - Free Report) ended the recent trading session at $132.83, demonstrating a +1.28% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.55%. Elsewhere, the Dow saw a downswing of 0.19%, while the tech-heavy Nasdaq depreciated by 0.95%.

The kidney dialysis provider's stock has dropped by 4.5% in the past month, falling short of the Medical sector's loss of 0.2% and the S&P 500's gain of 3.64%.

The investment community will be closely monitoring the performance of DaVita HealthCare in its forthcoming earnings report. The company is predicted to post an EPS of $3.29, indicating a 27.03% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.4 billion, indicating a 4.27% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.93 per share and a revenue of $13.46 billion, indicating changes of +12.91% and +5.01%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for DaVita HealthCare. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, DaVita HealthCare possesses a Zacks Rank of #3 (Hold).

In terms of valuation, DaVita HealthCare is presently being traded at a Forward P/E ratio of 12. This denotes a discount relative to the industry average Forward P/E of 19.96.

Meanwhile, DVA's PEG ratio is currently 0.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical - Outpatient and Home Healthcare stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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