Davita Healthcare (DVA) closed at $140.53 in its latest trading session, recording a -2.01% move from the previous day. Stock dragged the S&P 500, recording a daily loss of 0.4%. Elsewhere, the Dow lost 0.98%, while the high-tech Nasdaq added 0.18%.
Heading towards today, the renal dialysis provider shares have won 4.04% in the past month, surpassing the health sector's 1.56% loss and delaying the S&P 500's 4.97%.
The investment community will closely monitor Davita Healthcare's performance in its upcoming revenue reports. That day, Davita Healthcare is expected to report earnings of $2.7 per share, representing growth of 4.25% year-on-year. At the same time, our latest consensus estimates are expected to be $3.3 billion in revenue, showing a 3.5% escalation compared to the same period last year.
Zacks Consensus estimates that the fiscal year is forecast to earn $10.76 per share and revenue of $13.48 billion, representing a change of +11.16% and +5.15% year-on-year.
Investors should also be aware of recent adjustments to Davita Healthcare analyst estimates. Recent revisions tend to reflect the latest short-term business trends. As a result, an upward revision of the estimate expresses the analyst's aggressiveness in business operations and the ability to generate profits.
Our study suggests that changes in these estimates have a direct relationship with future stock price performance. We developed the Zacks Rank to take advantage of this phenomenon. Our system takes these estimated changes into account and provides a clear and practical evaluation model.
The Zacks Rank System runs from #1 (Strong Buy) to #5 (Strong Sell), and since 1988, #1 shares have held a stunning track record of superior performance with an average annual return of +25%. Currently, Davita Healthcare boasts a Zacks rank of #4 (sold).
As for valuation, Davita Healthcare is currently trading at a forward P/E ratio of 13.33. This represents the discount compared to the industry average forward P/E of 18.46.
We also see that the PEG ratio of DVA is 0.99. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account our expected revenue growth rate. Healthcare – Outpatient and home care held an average PEG ratio of 1.76 at yesterday's closing price.
Healthcare – The outpatient and home healthcare industries are part of the healthcare sector. Currently, the Zacks industry ranks 56, and is in the top 23% of the 250+ industries.
