In the latest market close, DaVita HealthCare (DVA) reached $140.44, with a -0.78% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.21%, and the tech-heavy Nasdaq gained 1.52%.
Coming into today, shares of the kidney dialysis provider had lost 8.26% in the past month. In that same time, the Medical sector lost 2.42%, while the S&P 500 lost 0.7%.
The investment community will be paying close attention to the earnings performance of DaVita HealthCare in its upcoming release. The company is slated to reveal its earnings on May 12, 2025. 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. Meanwhile, the latest consensus estimate predicts the revenue to be $3.21 billion, indicating a 4.59% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $10.76 per share and a revenue of $13.46 billion, demonstrating changes of +11.16% and +5.05%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for DaVita HealthCare. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has remained steady. DaVita HealthCare presently features a Zacks Rank of #3 (Hold).
Looking at valuation, DaVita HealthCare is presently trading at a Forward P/E ratio of 13.15. For comparison, its industry has an average Forward P/E of 21.34, which means DaVita HealthCare is trading at a discount to the group.
Meanwhile, DVA's PEG ratio is currently 1.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical - Outpatient and Home Healthcare industry held an average PEG ratio of 1.82.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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