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DaVita HealthCare (DVA) Gains As Market Dips: What You Should Know

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The most recent trading session ended with DaVita HealthCare (DVA - Free Report) standing at $159.43, reflecting a +0.08% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.21%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.05%.

The the stock of kidney dialysis provider has risen by 3.45% in the past month, leading the Medical sector's loss of 3.28% and undershooting the S&P 500's gain of 5.94%.

Investors will be eagerly watching for the performance of DaVita HealthCare in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2024. The company's upcoming EPS is projected at $2.76, signifying a 3.16% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.22 billion, reflecting a 3.23% rise from the equivalent quarter last year.

DVA's full-year Zacks Consensus Estimates are calling for earnings of $9.99 per share and revenue of $12.8 billion. These results would represent year-over-year changes of +17.95% and +5.43%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for DaVita HealthCare. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, the Zacks Consensus EPS estimate has remained steady. Currently, DaVita HealthCare is carrying a Zacks Rank of #2 (Buy).

In the context of valuation, DaVita HealthCare is at present trading with a Forward P/E ratio of 15.95. This valuation marks a discount compared to its industry's average Forward P/E of 23.8.

It's also important to note that DVA currently trades at 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 the stock's expected earnings growth rate. Medical - Outpatient and Home Healthcare stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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