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DaVita HealthCare (DVA) Falls More Steeply Than Broader Market: What Investors Need to Know

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DaVita HealthCare (DVA - Free Report) ended the recent trading session at $183.64, demonstrating a -1.32% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.52%. Elsewhere, the Dow lost 1.24%, while the tech-heavy Nasdaq lost 0.21%.

The kidney dialysis provider's shares have seen an increase of 6.54% over the last month, surpassing the Medical sector's gain of 3.23% and the S&P 500's loss of 1.21%.

The upcoming earnings release of DaVita HealthCare will be of great interest to investors. The company's earnings report is expected on October 29, 2026. The company's upcoming EPS is projected at $3.78, signifying a 50.60% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.53 billion, up 3.23% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.57 per share and revenue of $14.28 billion. These totals would mark changes of +35.16% and +4.67%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for DaVita HealthCare. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. DaVita HealthCare presently features a Zacks Rank of #3 (Hold).

In terms of valuation, DaVita HealthCare is currently trading at a Forward P/E ratio of 12.77. This valuation marks a discount compared to its industry average Forward P/E of 20.58.

Investors should also note that DVA has a PEG ratio of 0.48 right now. 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. By the end of yesterday's trading, the Medical - Outpatient and Home Healthcare industry had an average PEG ratio of 1.98.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 33% of all industries, numbering over 250.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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