In the latest trading session, DaVita HealthCare (DVA) closed at $159.07, adjusting -0.03% from previous closing price. The stock outperformed the S&P 500, which fell 0.17% on the day. Meanwhile, the Dow Jones Industrial Average fell 0.44%, and the tech-heavy Nasdaq fell 0.04%.
Shares of the kidney dialysis provider have gained 5.11% over the past month, leading the Medical sector's decline of 3.8% and the S&P 500's gain of 1.25%.
Analysts and investors alike will be keeping an eye on DaVita Healthcare's performance in its upcoming earnings release. The company's future EPS is expected to be $2.76, which would represent a -3.16% decrease compared to the same period last year. Meanwhile, our latest consensus estimate is projecting revenue of $3.22 billion, up 3.23% from the prior-year period.
For the full fiscal 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.
It is also important for investors to be aware of recent revisions to analyst estimates for DaVita HealthCare. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, upward estimate revisions represent analyst positivity about the company's business operations and ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near team stock movements. To benefit from this, we have created the Zacks Rank, a proprietary model that incorporates these estimate changes to provide an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). The firm has a remarkable, outside-audited track record of success, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DaVita HealthCare currently sports a Zacks Rank #1 (Strong Buy).
In terms of valuation, DaVita HealthCare is currently trading at a forward P/E of 15.93. This represents a discount compared to its industry's average Forward P/E of 24.47.
Additionally, we can see that DVA currently sports a PEG ratio of 0.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account a stock's expected earnings growth rate. As of yesterday's close, the Medical – Ambulatory & Home Health industry had an average PEG ratio of 2.18.
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Healthcare – The outpatient and home healthcare industry is part of the healthcare sector. This group has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank. The Zacks Industry Rank 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 2:1.
In subsequent trading sessions, remember to utilize Zacks.com to monitor all of these metrics impacting the stock and more.
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DaVita Inc. (DVA): Free Stock Price Analysis Report
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