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Here's Why DaVita HealthCare (DVA) Fell More Than Broader Market

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DaVita HealthCare (DVA - Free Report) closed at $163.16 in the latest trading session, marking a -0.65% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.31%.

Coming into today, shares of the kidney dialysis provider had gained 11.27% in the past month. In that same time, the Medical sector gained 1.59%, while the S&P 500 gained 1.57%.

The upcoming earnings release of DaVita HealthCare will be of great interest to investors. It is anticipated that the company will report an EPS of $2.76, marking a 3.16% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.22 billion, showing a 3.23% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.99 per share and revenue of $12.8 billion, indicating changes of +17.95% and +5.43%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for DaVita HealthCare. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.88% increase. At present, DaVita HealthCare boasts a Zacks Rank of #1 (Strong Buy).

In terms of valuation, DaVita HealthCare is presently being traded at a Forward P/E ratio of 16.44. This denotes a discount relative to the industry's average Forward P/E of 24.5.

It's also important to note that DVA currently trades at a PEG ratio of 0.94. 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. The Medical - Outpatient and Home Healthcare industry currently had an average PEG ratio of 2.1 as of yesterday's close.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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.

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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