The most recent trading session ended with DaVita HealthCare (DVA) standing at $134.97, reflecting a +1.1% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 2.51%. Meanwhile, the Dow experienced a rise of 2.66%, and the technology-dominated Nasdaq saw an increase of 2.71%.
The kidney dialysis provider's shares have seen a decrease of 11.24% over the last month, not keeping up with the Medical sector's loss of 11.09% and the S&P 500's loss of 8.86%.
Market participants will be closely following the financial results of DaVita HealthCare in its upcoming release. The company is forecasted to report an EPS of $1.75, showcasing a 26.47% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.21 billion, reflecting a 4.59% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.76 per share and a revenue of $13.46 billion, signifying shifts of +11.16% and +5.05%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for DaVita HealthCare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. DaVita HealthCare is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, DaVita HealthCare is holding a Forward P/E ratio of 12.4. For comparison, its industry has an average Forward P/E of 19.63, which means DaVita HealthCare is trading at a discount to the group.
It's also important to note that DVA currently trades at a PEG ratio of 0.98. 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 1.94 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 19, this industry ranks in the top 8% 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.
To follow DVA in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DaVita Inc. (DVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
