In the latest close session, DaVita HealthCare (DVA) was up +1.51% at $150.68. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 0.83%.
Heading into today, shares of the kidney dialysis provider had lost 4.11% over the past month, lagging the Medical sector's loss of 3.18% and the S&P 500's gain of 0.8%.
The investment community will be paying close attention to the earnings performance of DaVita HealthCare in its upcoming release. The company's earnings per share (EPS) are projected to be $2.41, reflecting a 20.5% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.3 billion, reflecting a 2.36% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.16 per share and a revenue of $14.11 billion, indicating changes of +31.35% and +3.41%, respectively, from the former year.
Any recent changes to analyst estimates for DaVita HealthCare should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. 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. 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, 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 witnessed an unchanged state. Right now, DaVita HealthCare possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, DaVita HealthCare is currently exchanging hands at a Forward P/E ratio of 10.48. This valuation marks a discount compared to its industry average Forward P/E of 18.42.
One should further note that DVA currently holds a PEG ratio of 0.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Medical - Outpatient and Home Healthcare industry had an average PEG ratio of 1.83.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 37% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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DaVita Inc. (DVA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).