In the latest trading session, DaVita Healthcare (DVA) closed at $161.57, adjusting -0.01% from the previous day’s closing price. This stock price change lagged the S&P 500’s daily gain of 0.25%. Meanwhile, the Dow rose 0.2% and the tech-heavy Nasdaq added 0.56%.
Heading into today, shares of the kidney dialysis provider had gained 4.41% over the past month, outpacing the Medical sector’s loss of 1.51% and the S&P 500’s gain of 1.65% in that time period.
DaVita HealthCare’s upcoming earnings release will be of great interest to investors, as the company is expected to post EPS of $2.76, which would represent a year-over-year decrease of 3.16%. At the same time, our latest consensus estimate is calling for revenue of $3.22 billion, which would represent year-over-year increase of 3.23%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.99 per share and revenue of $12.8 billion, which would represent changes of +17.95% and +5.43%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for DaVita HealthCare. Recent revisions tend to reflect recent short-term business trends, therefore, positive estimate revisions represent analyst confidence in the company’s operating performance and earnings potential.
Our research shows that these estimate revisions are directly correlated with Proximity Team’s stock price movements, and investors can capitalize on this by using the Zacks Rank, which is our model that takes these estimate changes into account and delivers a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system 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, the Zacks Consensus EPS estimate has remained stagnant. DaVita HealthCare currently carries a Zacks Rank #1 (Strong Buy).
Digging deeper into valuation, DaVita HealthCare currently has a Forward P/E ratio of 16.18, which indicates a discount compared to its industry’s average Forward P/E ratio of 24.99.
What’s even more noteworthy is that DVA currently has a PEG ratio of 0.93. The PEG ratio is similar to the commonly-used P/E ratio, but this metric also incorporates a company’s expected earnings growth rate. The average PEG ratio for the Healthcare – Outpatient and Home Healthcare industry was 2.15 as of yesterday’s close.
The Healthcare – Outpatient and Home Healthcare industry is a part of the Healthcare sector. Currently, this industry is ranked #46 in the Zacks Industry Rank, putting it in the top 19% of all 250+ industries.
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The Zacks Industry Rank gauges the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks included in the groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and more, on Zacks.com.
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DaVita Inc. (DVA) : Free Stock Analysis Report
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