In the latest close session, DaVita HealthCare (DVA) was up +2.19% at $126.62. This move outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a rise of 0.44%, and the technology-dominated Nasdaq saw a decrease of 0.76%.
The stock of kidney dialysis provider has fallen by 5.38% in the past month, lagging the Medical sector's gain of 1.54% and the S&P 500's gain of 1.14%.
Investors will be eagerly watching for the performance of DaVita HealthCare in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2025. In that report, analysts expect DaVita HealthCare to post earnings of $3.29 per share. This would mark year-over-year growth of 27.03%. Meanwhile, our latest consensus estimate is calling for revenue of $3.4 billion, up 4.27% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.93 per share and revenue of $13.46 billion, indicating changes of +12.91% and +5.01%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for DaVita HealthCare. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, DaVita HealthCare is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, DaVita HealthCare is currently being traded at a Forward P/E ratio of 11.34. This denotes a discount relative to the industry average Forward P/E of 21.14.
It is also worth noting that DVA currently has a PEG ratio of 0.89. 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 industry had an average PEG ratio of 1.88 as trading concluded yesterday.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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DaVita Inc. (DVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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