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DaVita HealthCare (DVA) Stock Moves -0.23%: What You Should Know

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DaVita HealthCare (DVA - Free Report) ended the recent trading session at $162.78, demonstrating a -0.23% swing from the preceding day's closing price. This change was narrower than the S&P 500's daily loss of 0.92%. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, lost 1.6%.

The kidney dialysis provider's stock has climbed by 0.98% in the past month, exceeding the Medical sector's loss of 4.16% and lagging the S&P 500's gain of 2.68%.

The investment community will be closely monitoring the performance of DaVita HealthCare in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2024. On that day, DaVita HealthCare is projected to report earnings of $2.76 per share, which would represent a year-over-year decline of 3.16%. Alongside, our most recent consensus estimate is anticipating revenue of $3.22 billion, indicating a 3.23% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.99 per share and a revenue of $12.8 billion, indicating changes of +17.95% and +5.43%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for DaVita HealthCare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DaVita HealthCare presently features a Zacks Rank of #3 (Hold).

With respect to valuation, DaVita HealthCare is currently being traded at a Forward P/E ratio of 16.34. This valuation marks a discount compared to its industry's average Forward P/E of 24.88.

It's also important to note that DVA currently trades at a PEG ratio of 0.93. 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. By the end of yesterday's trading, the Medical - Outpatient and Home Healthcare industry had an average PEG ratio of 2.21.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. With its current Zacks Industry Rank of 28, this industry ranks in the top 12% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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