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Diversified Healthcare (DHC) Stock Sinks As Market Gains: What You Should Know
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Diversified Healthcare (DHC - Free Report) closed the most recent trading day at $2.50, moving -0.79% from the previous trading session. This change lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 11.47%.
Heading into today, shares of the residential care real estate investment trust had lost 18.71% over the past month, lagging the Finance sector's gain of 2.29% and the S&P 500's gain of 3.34% in that time.
Diversified Healthcare will be looking to display strength as it nears its next earnings release, which is expected to be August 1, 2023. The company is expected to report EPS of $0.09, up 325% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $353.15 million, up 12.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.38 per share and revenue of $1.42 billion. These totals would mark changes of +337.5% and +10.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Diversified Healthcare. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Diversified Healthcare is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Diversified Healthcare has a Forward P/E ratio of 6.63 right now. For comparison, its industry has an average Forward P/E of 11.59, which means Diversified Healthcare is trading at a discount to the group.
Meanwhile, DHC's PEG ratio is currently 0.66. 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. DHC's industry had an average PEG ratio of 2.13 as of yesterday's close.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 DHC in the coming trading sessions, be sure to utilize Zacks.com.
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Diversified Healthcare (DHC) Stock Sinks As Market Gains: What You Should Know
Diversified Healthcare (DHC - Free Report) closed the most recent trading day at $2.50, moving -0.79% from the previous trading session. This change lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 11.47%.
Heading into today, shares of the residential care real estate investment trust had lost 18.71% over the past month, lagging the Finance sector's gain of 2.29% and the S&P 500's gain of 3.34% in that time.
Diversified Healthcare will be looking to display strength as it nears its next earnings release, which is expected to be August 1, 2023. The company is expected to report EPS of $0.09, up 325% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $353.15 million, up 12.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.38 per share and revenue of $1.42 billion. These totals would mark changes of +337.5% and +10.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Diversified Healthcare. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Diversified Healthcare is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Diversified Healthcare has a Forward P/E ratio of 6.63 right now. For comparison, its industry has an average Forward P/E of 11.59, which means Diversified Healthcare is trading at a discount to the group.
Meanwhile, DHC's PEG ratio is currently 0.66. 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. DHC's industry had an average PEG ratio of 2.13 as of yesterday's close.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 DHC in the coming trading sessions, be sure to utilize Zacks.com.