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DaVita HealthCare (DVA) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest close session, DaVita HealthCare (DVA - Free Report) was down 2.3% at $128.14. The stock's change was less than the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 0.71%.

Coming into today, shares of the kidney dialysis provider had lost 4.87% in the past month. In that same time, the Medical sector gained 5.9%, while the S&P 500 gained 4.26%.

The upcoming earnings release of DaVita HealthCare will be of great interest to investors. On that day, DaVita HealthCare is projected to report earnings of $3.29 per share, which would represent year-over-year growth of 27.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.4 billion, up 4.27% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $10.93 per share and a revenue of $13.46 billion, demonstrating changes of +12.91% and +5.01%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for DaVita HealthCare. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Currently, DaVita HealthCare is carrying a Zacks Rank of #2 (Buy).

Looking at valuation, DaVita HealthCare is presently trading at a Forward P/E ratio of 12. This valuation marks a discount compared to its industry average Forward P/E of 20.8.

It is also worth noting that DVA currently has a PEG ratio of 0.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Medical - Outpatient and Home Healthcare industry was having an average PEG ratio of 1.96.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 33, positioning it in the top 14% of all 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.

To follow DVA in the coming trading sessions, be sure to utilize Zacks.com.


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