DaVita HealthCare (DVA) ended the recent trading session at $132.87, demonstrating a +1.75% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 0.31%.
Coming into today, shares of the kidney dialysis provider had lost 5.2% in the past month. In that same time, the Medical sector lost 0.38%, while the S&P 500 gained 3.15%.
The upcoming earnings release of DaVita HealthCare will be of great interest to investors. The company is predicted to post an EPS of $3.29, indicating a 27.03% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.4 billion, up 4.27% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.93 per share and a revenue of $13.46 billion, signifying shifts of +12.91% and +5.01%, respectively, from the last year.
Any recent changes to analyst estimates for DaVita HealthCare should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. DaVita HealthCare is currently a Zacks Rank #2 (Buy).
Looking at its valuation, DaVita HealthCare is holding a Forward P/E ratio of 11.95. This expresses a discount compared to the average Forward P/E of 21.36 of its industry.
We can additionally observe that DVA currently boasts a PEG ratio of 0.94. 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 the market closed yesterday, the Medical – Outpatient and Home Healthcare industry was having an average PEG ratio of 1.96.
The Medical – Outpatient and Home Healthcare industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% echelons of all 250+ industries.
