In the latest trading session, DaVita HealthCare (DVA) closed at $153.36, marking a +0.33% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 3.46% for the day. Elsewhere, the Dow saw a downswing of 2.5%, while the tech-heavy Nasdaq depreciated by 4.31%.
Shares of the kidney dialysis provider have appreciated by 7.17% over the course of the past month, outperforming the Medical sector's loss of 10.85% and the S&P 500's loss of 5.27%.
Analysts and investors alike will be keeping a close eye on the performance of DaVita HealthCare in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.75, marking a 26.47% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.23 billion, indicating a 5.27% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.76 per share and revenue of $13.47 billion. These totals would mark changes of +11.16% and +5.08%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DaVita HealthCare. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. DaVita HealthCare is currently a Zacks Rank #3 (Hold).
Looking at valuation, DaVita HealthCare is presently trading at a Forward P/E ratio of 13.37. For comparison, its industry has an average Forward P/E of 19.94, which means DaVita HealthCare is trading at a discount to the group.
It is also worth noting that DVA currently has a PEG ratio of 1.06. 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 was holding an average PEG ratio of 1.88 at yesterday's closing price.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. With its current Zacks Industry Rank of 29, this industry ranks in the top 12% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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