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Diversified Healthcare (DHC) Gains But Lags Market: What You Should Know
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Diversified Healthcare (DHC - Free Report) closed the most recent trading day at $2.69, moving +0.37% from the previous trading session. This move lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 4.62%.
Prior to today's trading, shares of the residential care real estate investment trust had gained 4.28% over the past month. This has outpaced the Finance sector's gain of 3.08% and the S&P 500's gain of 2.65% in that time.
Investors will be hoping for strength from Diversified Healthcare as it approaches its next earnings release, which is expected to be August 1, 2023. In that report, analysts expect Diversified Healthcare to post earnings of $0.09 per share. This would mark year-over-year growth of 325%. Our most recent consensus estimate is calling for quarterly revenue of $353.15 million, up 12.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.38 per share and revenue of $1.42 billion, which would represent changes of +337.5% and +10.92%, respectively, from the prior year.
Any recent changes to analyst estimates for Diversified Healthcare should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Diversified Healthcare is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Diversified Healthcare has a Forward P/E ratio of 7.05 right now. For comparison, its industry has an average Forward P/E of 11.73, which means Diversified Healthcare is trading at a discount to the group.
Investors should also note that DHC has a PEG ratio of 0.71 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. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.13 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 116, putting it in the top 47% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Gains But Lags Market: What You Should Know
Diversified Healthcare (DHC - Free Report) closed the most recent trading day at $2.69, moving +0.37% from the previous trading session. This move lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 4.62%.
Prior to today's trading, shares of the residential care real estate investment trust had gained 4.28% over the past month. This has outpaced the Finance sector's gain of 3.08% and the S&P 500's gain of 2.65% in that time.
Investors will be hoping for strength from Diversified Healthcare as it approaches its next earnings release, which is expected to be August 1, 2023. In that report, analysts expect Diversified Healthcare to post earnings of $0.09 per share. This would mark year-over-year growth of 325%. Our most recent consensus estimate is calling for quarterly revenue of $353.15 million, up 12.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.38 per share and revenue of $1.42 billion, which would represent changes of +337.5% and +10.92%, respectively, from the prior year.
Any recent changes to analyst estimates for Diversified Healthcare should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Diversified Healthcare is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Diversified Healthcare has a Forward P/E ratio of 7.05 right now. For comparison, its industry has an average Forward P/E of 11.73, which means Diversified Healthcare is trading at a discount to the group.
Investors should also note that DHC has a PEG ratio of 0.71 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. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.13 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 116, putting it in the top 47% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.