In the latest trading session, DaVita HealthCare (DVA) closed at $236.97, marking a +1.26% move from the previous day. This move outpaced the S&P 500's daily loss of 1.01%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.4%.
The stock of kidney dialysis provider has risen by 12.55% in the past month, leading the Medical sector's gain of 5.37% and the S&P 500's gain of 0.32%.
The investment community will be closely monitoring the performance of DaVita HealthCare in its forthcoming earnings report. It is anticipated that the company will report an EPS of $4.01, marking a 35.93% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.53 billion, indicating a 4.53% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.07 per share and a revenue of $14.3 billion, representing changes of +39.8% and +4.78%, respectively, from the prior year.
Investors should also note any 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 business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DaVita HealthCare is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, DaVita HealthCare is at present trading with a Forward P/E ratio of 15.53. This signifies a discount in comparison to the average Forward P/E of 20.04 for its industry.
It is also worth noting that DVA currently has a PEG ratio of 0.77. 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 average PEG ratio for the Medical - Outpatient and Home Healthcare industry stood at 1.71 at the close of the market yesterday.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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DaVita Inc. (DVA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).