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DaVita HealthCare (DVA) Exceeds Market Returns: Some Facts to Consider

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DaVita HealthCare (DVA - Free Report) ended the recent trading session at $152.42, demonstrating a +1.68% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 1.05% for the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.64%.

Heading into today, shares of the kidney dialysis provider had lost 2.21% over the past month, lagging the Medical sector's gain of 0.31% and the S&P 500's gain of 8.59%.

The investment community will be closely monitoring the performance of DaVita HealthCare in its forthcoming earnings report. The company is scheduled to release its earnings on May 5, 2026. In that report, analysts expect DaVita HealthCare to post earnings of $2.41 per share. This would mark year-over-year growth of 20.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.3 billion, up 2.36% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $14.16 per share and a revenue of $14.11 billion, demonstrating changes of +31.35% and +3.41%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for DaVita HealthCare. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. 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 10.59. This indicates a discount in contrast to its industry's Forward P/E of 18.37.

It is also worth noting that DVA currently has a PEG ratio of 0.52. 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. The Medical - Outpatient and Home Healthcare industry had an average PEG ratio of 1.68 as trading concluded yesterday.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 40% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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