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DaVita HealthCare (DVA) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest close session, DaVita HealthCare (DVA - Free Report) was down 5.11% at $104.47. This change lagged the S&P 500's 0.19% loss on the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.1%.
The kidney dialysis provider's stock has dropped by 8.29% in the past month, falling short of the Medical sector's gain of 0.48% and the S&P 500's gain of 2.26%.
Investors will be eagerly watching for the performance of DaVita HealthCare in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.24, marking a 44.64% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.53 billion, reflecting a 6.99% rise from the equivalent quarter last year.
DVA's full-year Zacks Consensus Estimates are calling for earnings of $10.7 per share and revenue of $13.55 billion. These results would represent year-over-year changes of +10.54% and 0%, respectively.
Investors should also note any recent changes to analyst estimates for DaVita HealthCare. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, DaVita HealthCare holds a Zacks Rank of #3 (Hold).
In terms of valuation, DaVita HealthCare is currently trading at a Forward P/E ratio of 8.54. For comparison, its industry has an average Forward P/E of 17.68, which means DaVita HealthCare is trading at a discount to the group.
It's also important to note that DVA currently trades at a PEG ratio of 0.68. 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 102, which puts it in the top 42% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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DaVita HealthCare (DVA) Suffers a Larger Drop Than the General Market: Key Insights
In the latest close session, DaVita HealthCare (DVA - Free Report) was down 5.11% at $104.47. This change lagged the S&P 500's 0.19% loss on the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.1%.
The kidney dialysis provider's stock has dropped by 8.29% in the past month, falling short of the Medical sector's gain of 0.48% and the S&P 500's gain of 2.26%.
Investors will be eagerly watching for the performance of DaVita HealthCare in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.24, marking a 44.64% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.53 billion, reflecting a 6.99% rise from the equivalent quarter last year.
DVA's full-year Zacks Consensus Estimates are calling for earnings of $10.7 per share and revenue of $13.55 billion. These results would represent year-over-year changes of +10.54% and 0%, respectively.
Investors should also note any recent changes to analyst estimates for DaVita HealthCare. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, DaVita HealthCare holds a Zacks Rank of #3 (Hold).
In terms of valuation, DaVita HealthCare is currently trading at a Forward P/E ratio of 8.54. For comparison, its industry has an average Forward P/E of 17.68, which means DaVita HealthCare is trading at a discount to the group.
It's also important to note that DVA currently trades at a PEG ratio of 0.68. 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 102, which puts it in the top 42% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.