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DaVita HealthCare (DVA) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest trading session, DaVita HealthCare (DVA - Free Report) closed at $164.22, marking a -0.59% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.03%. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq increased by 0.2%.

Heading into today, shares of the kidney dialysis provider had gained 8.56% over the past month, outpacing the Medical sector's gain of 2.67% and the S&P 500's gain of 1.54% in that time.

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. Alongside, our most recent consensus estimate is anticipating revenue of $3.22 billion, indicating a 3.23% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.99 per share and revenue of $12.8 billion. These totals would mark changes of +17.95% and +5.43%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for DaVita HealthCare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.88% higher within the past month. DaVita HealthCare currently has a Zacks Rank of #1 (Strong Buy).

In the context of valuation, DaVita HealthCare is at present trading with a Forward P/E ratio of 16.54. This expresses a discount compared to the average Forward P/E of 24.55 of its industry.

It is also worth noting that DVA currently has a PEG ratio of 0.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Outpatient and Home Healthcare was holding an average PEG ratio of 2.09 at yesterday's closing price.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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