In the latest market close, DaVita HealthCare (DVA) reached $137.72, with a +1.3% movement compared to the previous day. The stock’s change was more than the S&P 500’s daily gain of 0.64%. Meanwhile, the Dow experienced a rise of 1.85%, and the technology-dominated Nasdaq saw an increase of 0.2%.
The the stock of kidney dialysis provider has fallen by 3.75% in the past month, lagging the Medical sector’s gain of 0.71% and the S&P 500’s gain of 3.82%.
Analysts and investors alike will be keeping a close eye on the performance of DaVita HealthCare in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $2.47, signifying a 18.75% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.16 billion, up 5.43% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.62 per share and revenue of $12.74 billion, which would represent changes of +13.58% and +4.97%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DaVita HealthCare. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, DaVita HealthCare possesses a Zacks Rank of #3 (Hold).
Investors should also note DaVita HealthCare’s current valuation metrics, including its Forward P/E ratio of 14.13. This denotes a discount relative to the industry’s average Forward P/E of 23.15.
Meanwhile, DVA’s PEG ratio is currently 1.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The Medical – Outpatient and Home Healthcare was holding an average PEG ratio of 2.03 at yesterday’s closing price.
The Medical – Outpatient and Home Healthcare industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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