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Diversified Healthcare (DHC) Flat As Market Sinks: What You Should Know

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The latest trading session saw Diversified Healthcare (DHC - Free Report) ending at $1.88, denoting no adjustment from its last day's close. This change was narrower than the S&P 500's 0.13% loss on the day. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq decreased by 0.12%.

Coming into today, shares of the residential care real estate investment trust had lost 21.99% in the past month. In that same time, the Finance sector lost 5.86%, while the S&P 500 lost 5.53%.

The upcoming earnings release of Diversified Healthcare will be of great interest to investors. The company's earnings report is expected on November 1, 2023. The company is expected to report EPS of $0.08, up 233.33% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $356.42 million, indicating a 10.37% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.28 per share and revenue of $1.41 billion, indicating changes of +275% and +10.22%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Diversified Healthcare. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.45% lower. Right now, Diversified Healthcare possesses a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Diversified Healthcare is presently trading at a Forward P/E ratio of 6.71. This signifies a discount in comparison to the average Forward P/E of 9.95 for its industry.

One should further note that DHC currently holds a PEG ratio of 0.29. 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. As the market closed yesterday, the REIT and Equity Trust - Other industry was having an average PEG ratio of 2.13.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% of all 250+ industries.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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