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DaVita HealthCare (DVA) Gains But Lags Market: What You Should Know

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In the latest market close, DaVita HealthCare (DVA - Free Report) reached $153.99, with a +0.29% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 2.17%.

Shares of the kidney dialysis provider witnessed a gain of 5.29% over the previous month, beating the performance of the Medical sector with its gain of 3.34% and the S&P 500's gain of 2.92%.

Analysts and investors alike will be keeping a close eye on the performance of DaVita HealthCare in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.76, signifying a 3.16% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.22 billion, indicating a 3.23% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $9.99 per share and a revenue of $12.8 billion, demonstrating changes of +17.95% and +5.43%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for DaVita HealthCare. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.88% higher. DaVita HealthCare is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, DaVita HealthCare is currently trading at a Forward P/E ratio of 15.38. This valuation marks a discount compared to its industry's average Forward P/E of 24.3.

It is also worth noting that DVA currently has a PEG ratio of 0.88. 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. The Medical - Outpatient and Home Healthcare was holding an average PEG ratio of 2.01 at yesterday's closing price.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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