In the latest close session, DaVita HealthCare (DVA) was down 3.27% at $144.57. The stock trailed the S&P 500, which registered a daily gain of 0.8%. Meanwhile, the Dow experienced a drop of 0.15%, and the technology-dominated Nasdaq saw an increase of 1.6%.
The stock of kidney dialysis provider has fallen by 0.35% in the past month, leading the Medical sector's loss of 0.77% and undershooting the S&P 500's gain of 5.15%.
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 $2.41 per share, which would represent year-over-year growth of 20.5%. Our most recent consensus estimate is calling for quarterly revenue of $3.3 billion, up 2.36% from the year-ago period.
DVA's full-year Zacks Consensus Estimates are calling for earnings of $14.16 per share and revenue of $14.11 billion. These results would represent year-over-year changes of +31.35% and +3.41%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for DaVita HealthCare. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, DaVita HealthCare possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that DaVita HealthCare has a Forward P/E ratio of 10.56 right now. For comparison, its industry has an average Forward P/E of 18.19, which means DaVita HealthCare is trading at a discount to the group.
We can additionally observe that DVA currently boasts a PEG ratio of 0.52. 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. As of the close of trade yesterday, the Medical - Outpatient and Home Healthcare industry held an average PEG ratio of 1.78.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 40% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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).