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Are Investors Undervaluing DaVita HealthCare (DVA) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
DaVita HealthCare (DVA - Free Report) is a stock many investors are watching right now. DVA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 14.60, while its industry has an average P/E of 21.59. DVA's Forward P/E has been as high as 14.79 and as low as 9.37, with a median of 11.79, all within the past year.
Investors should also note that DVA holds a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DVA's industry currently sports an average PEG of 1.64. Within the past year, DVA's PEG has been as high as 0.75 and as low as 0.42, with a median of 0.53.
Another valuation metric that we should highlight is DVA's P/B ratio of 4.22. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DVA's current P/B looks attractive when compared to its industry's average P/B of 6.39. DVA's P/B has been as high as 4.79 and as low as 1.77, with a median of 2.34, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DVA has a P/S ratio of 1. This compares to its industry's average P/S of 1.35.
Finally, we should also recognize that DVA has a P/CF ratio of 12.18. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DVA's current P/CF looks attractive when compared to its industry's average P/CF of 32.31. Within the past 12 months, DVA's P/CF has been as high as 14.30 and as low as 7.98, with a median of 11.89.
These are just a handful of the figures considered in DaVita HealthCare's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DVA is an impressive value stock right now.
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Are Investors Undervaluing DaVita HealthCare (DVA) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
DaVita HealthCare (DVA - Free Report) is a stock many investors are watching right now. DVA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 14.60, while its industry has an average P/E of 21.59. DVA's Forward P/E has been as high as 14.79 and as low as 9.37, with a median of 11.79, all within the past year.
Investors should also note that DVA holds a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DVA's industry currently sports an average PEG of 1.64. Within the past year, DVA's PEG has been as high as 0.75 and as low as 0.42, with a median of 0.53.
Another valuation metric that we should highlight is DVA's P/B ratio of 4.22. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DVA's current P/B looks attractive when compared to its industry's average P/B of 6.39. DVA's P/B has been as high as 4.79 and as low as 1.77, with a median of 2.34, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DVA has a P/S ratio of 1. This compares to its industry's average P/S of 1.35.
Finally, we should also recognize that DVA has a P/CF ratio of 12.18. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DVA's current P/CF looks attractive when compared to its industry's average P/CF of 32.31. Within the past 12 months, DVA's P/CF has been as high as 14.30 and as low as 7.98, with a median of 11.89.
These are just a handful of the figures considered in DaVita HealthCare's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DVA is an impressive value stock right now.