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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 $2.26, moving -1.74% from the previous trading session. This move lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 1.14%.
Heading into today, shares of the residential care real estate investment trust had lost 19.3% over the past month, lagging the Finance sector's loss of 3.09% and the S&P 500's loss of 0.73% in that time.
Investors will be hoping for strength from Diversified Healthcare as it approaches its next earnings release. On that day, Diversified Healthcare is projected to report earnings of $0.08 per share, which would represent year-over-year growth of 233.33%. Our most recent consensus estimate is calling for quarterly revenue of $356.42 million, up 10.37% from the year-ago period.
DHC's full-year Zacks Consensus Estimates are calling for earnings of $0.28 per share and revenue of $1.41 billion. These results would represent year-over-year changes of +275% and +10.22%, respectively.
It is also important to note the recent changes to analyst estimates for Diversified Healthcare. These revisions help to show the ever-changing nature of near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 3.45% lower. Diversified Healthcare currently has a Zacks Rank of #4 (Sell).
Investors should also note Diversified Healthcare's current valuation metrics, including its Forward P/E ratio of 8.21. Its industry sports an average Forward P/E of 10.56, so we one might conclude that Diversified Healthcare is trading at a discount comparatively.
It is also worth noting that DHC currently has a PEG ratio of 0.82. 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 2.43 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 191, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on 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 $2.26, moving -1.74% from the previous trading session. This move lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 1.14%.
Heading into today, shares of the residential care real estate investment trust had lost 19.3% over the past month, lagging the Finance sector's loss of 3.09% and the S&P 500's loss of 0.73% in that time.
Investors will be hoping for strength from Diversified Healthcare as it approaches its next earnings release. On that day, Diversified Healthcare is projected to report earnings of $0.08 per share, which would represent year-over-year growth of 233.33%. Our most recent consensus estimate is calling for quarterly revenue of $356.42 million, up 10.37% from the year-ago period.
DHC's full-year Zacks Consensus Estimates are calling for earnings of $0.28 per share and revenue of $1.41 billion. These results would represent year-over-year changes of +275% and +10.22%, respectively.
It is also important to note the recent changes to analyst estimates for Diversified Healthcare. These revisions help to show the ever-changing nature of near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 3.45% lower. Diversified Healthcare currently has a Zacks Rank of #4 (Sell).
Investors should also note Diversified Healthcare's current valuation metrics, including its Forward P/E ratio of 8.21. Its industry sports an average Forward P/E of 10.56, so we one might conclude that Diversified Healthcare is trading at a discount comparatively.
It is also worth noting that DHC currently has a PEG ratio of 0.82. 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 2.43 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 191, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.