DaVita HealthCare (DVA) closed the most recent trading day at $116.51, moving +1.14% from the previous trading session. This change outpaced the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq added 0.52%.
Heading into today, shares of the kidney dialysis provider had lost 4.2% over the past month, lagging the Medical sector's gain of 2.25% and the S&P 500's gain of 3%.
The investment community will be paying close attention to the earnings performance of DaVita HealthCare in its upcoming release. The company's upcoming EPS is projected at $3.34, signifying a 49.11% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.53 billion, indicating a 6.99% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.52 per share and a revenue of $13.55 billion, representing changes of +8.68% and +5.75%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DaVita HealthCare. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering 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 currently has a Zacks Rank of #3 (Hold).
With respect to valuation, DaVita HealthCare is currently being traded at a Forward P/E ratio of 10.95. This valuation marks a discount compared to its industry average Forward P/E of 19.65.
It is also worth noting that DVA currently has a PEG ratio of 0.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DVA's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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