DaVita HealthCare (DVA) ended the recent trading session at $193.86, demonstrating a +1.55% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 1.21%, and the Nasdaq, a tech-heavy index, lost 0.01%.
The stock of kidney dialysis provider has risen by 7.3% in the past month, leading the Medical sector's loss of 0.29% and the S&P 500's loss of 2.43%.
The investment community will be closely monitoring the performance of DaVita HealthCare in its forthcoming earnings report. On that day, DaVita HealthCare is projected to report earnings of $3.78 per share, which would represent year-over-year growth of 50.6%. Meanwhile, our latest consensus estimate is calling for revenue of $3.53 billion, up 3.23% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.57 per share and revenue of $14.28 billion. These totals would mark changes of +35.16% and +4.67%, respectively, from last year.
Any recent changes to analyst estimates for DaVita HealthCare should also be noted by investors. 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 business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, DaVita HealthCare holds a Zacks Rank of #3 (Hold).
In the context of valuation, DaVita HealthCare is at present trading with a Forward P/E ratio of 13.1. This valuation marks a discount compared to its industry average Forward P/E of 20.38.
Also, we should mention that DVA has a PEG ratio of 0.49. 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 had an average PEG ratio of 1.79 as trading concluded yesterday.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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DaVita Inc. (DVA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).