DaVita HealthCare (DVA) closed the most recent trading day at $141.84, moving -1.36% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 0.95%.
Prior to today's trading, shares of the kidney dialysis provider had gained 3.37% outpaced the Medical sector's loss of 0.67% and lagged the S&P 500's gain of 3.85%.
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 $2.7, showcasing a 4.25% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.3 billion, indicating a 3.5% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.76 per share and revenue of $13.48 billion. These totals would mark changes of +11.16% and +5.15%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DaVita HealthCare. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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, the Zacks Consensus EPS estimate remained stagnant. As of now, DaVita HealthCare holds a Zacks Rank of #3 (Hold).
Investors should also note DaVita HealthCare's current valuation metrics, including its Forward P/E ratio of 13.37. This valuation marks a discount compared to its industry average Forward P/E of 18.96.
We can additionally observe that DVA currently boasts a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Medical - Outpatient and Home Healthcare industry had an average PEG ratio of 1.8.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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