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DaVita HealthCare (DVA) Advances While Market Declines: Some Information for Investors

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In the latest market close, DaVita HealthCare (DVA - Free Report) reached $163.08, with a +0.51% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw an upswing of 0.33%, while the tech-heavy Nasdaq depreciated by 0.39%.

Coming into today, shares of the kidney dialysis provider had gained 5.89% in the past month. In that same time, the Medical sector lost 2.05%, while the S&P 500 gained 2.43%.

The investment community will be paying close attention to the earnings performance of DaVita HealthCare in its upcoming release. On that day, DaVita HealthCare is projected to report earnings of $2.76 per share, which would represent a year-over-year decline of 3.16%. 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.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.99 per share and a revenue of $12.8 billion, indicating changes of +17.95% and +5.43%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for DaVita HealthCare. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. DaVita HealthCare is currently a Zacks Rank #1 (Strong Buy).

From a valuation perspective, DaVita HealthCare is currently exchanging hands at a Forward P/E ratio of 16.25. This expresses a discount compared to the average Forward P/E of 25.27 of its industry.

We can also see that DVA currently has a PEG ratio of 0.93. 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 Medical - Outpatient and Home Healthcare was holding an average PEG ratio of 2.12 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 51, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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