The latest trading session saw DaVita HealthCare (DVA) ending at $143.96, denoting a +0.94% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.44%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.27%.
The the stock of kidney dialysis provider has fallen by 0.9% in the past month, lagging the Medical sector's gain of 1.16% and the S&P 500's gain of 10.62%.
The upcoming earnings release of DaVita HealthCare will be of great interest to investors. The company's earnings report is expected on May 12, 2025. The company is predicted to post an EPS of $1.75, indicating a 26.47% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.21 billion, up 4.59% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.76 per share and revenue of $13.46 billion, indicating changes of +11.16% and +5.05%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DaVita HealthCare. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, DaVita HealthCare is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, DaVita HealthCare is presently trading at a Forward P/E ratio of 13.25. This valuation marks a discount compared to its industry's average Forward P/E of 21.23.
Also, we should mention that DVA has a PEG ratio of 1.05. 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. As of the close of trade yesterday, the Medical - Outpatient and Home Healthcare industry held an average PEG ratio of 1.91.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 53, placing it within the top 22% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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