DaVita HealthCare (DVA) recently experienced a 2.4% daily and 4.15% monthly stock decline, significantly underperforming the S&P 500 and Medical sector, despite robust earnings forecasts. The kidney dialysis provider is expected to report quarterly EPS of $3.29, up 27.03% year-over-year, and revenue of $3.4 billion, a 4.27% increase, with annual estimates also showing strong growth. DVA, currently a Zacks Rank #3 (Hold), trades at a Forward P/E of 11.99 and a PEG ratio of 0.94, both representing a substantial discount to its industry averages, suggesting potential undervaluation amidst its recent share price weakness.
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. DaVita HealthCare (DVA) Stock Falls Amid Market Uptick: What Investors Need to Know Read MoreHide Full Article DaVita HealthCare (DVA - Free Report) closed at $127.89 in the latest trading session, marking a -2.4% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.58%. Shares of the kidney dialysis provider witnessed a loss of 4.15% over the previous month, trailing the performance of the Medical sector with its gain of 2.74%, and the S&P 500's gain of 3.68%. The investment community will be paying close attention to the earnings performance of DaVita HealthCare in its upcoming release. The company is forecasted to report an EPS of $3.29, showcasing a 27.03% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.4 billion, up 4.27% from the year-ago period. For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.93 per share and a revenue of $13.46 billion, signifying shifts of +12.91% and +5.01%, respectively, from the last year. Any recent changes to analyst estimates for DaVita HealthCare should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. 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, there's been no change in the Zacks Consensus EPS estimate. DaVita HealthCare is currently a Zacks Rank 3 (Hold). Digging into valuation, DaVita HealthCare currently has a Forward P/E ratio of 11.99. This denotes a discount relative to the industry average Forward P/E of 20.55. Meanwhile, DVA's PEG ratio is currently 0.94. 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. As of the close of trade yesterday, the Medical - Outpatient and Home Healthcare industry held an average PEG ratio of 1.95. The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which 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 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. See More Zacks Research for These Tickers Normally $25 each - click below to receive one report FREE: Image: Bigstock DaVita HealthCare (DVA) Stock Falls Amid Market Uptick: What Investors Need to Know DaVita HealthCare (DVA - Free Report) closed at $127.89 in the latest trading session, marking a -2.4% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.58%. Shares of the kidney dialysis provider witnessed a loss of 4.15% over the previous month, trailing the performance of the Medical sector with its gain of 2.74%, and the S&P 500's gain of 3.68%. The investment community will be paying close attention to the earnings performance of DaVita HealthCare in its upcoming release. The company is forecasted to report an EPS of $3.29, showcasing a 27.03% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.4 billion, up 4.27% from the year-ago period. For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.93 per share and a revenue of $13.46 billion, signifying shifts of +12.91% and +5.01%, respectively, from the last year. Any recent changes to analyst estimates for DaVita HealthCare should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. 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, there's been no change in the Zacks Consensus EPS estimate. DaVita HealthCare is currently a Zacks Rank 3 (Hold). Digging into valuation, DaVita HealthCare currently has a Forward P/E ratio of 11.99. This denotes a discount relative to the industry average Forward P/E of 20.55. Meanwhile, DVA's PEG ratio is currently 0.94. 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. As of the close of trade yesterday, the Medical - Outpatient and Home Healthcare industry held an average PEG ratio of 1.95. The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which 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 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. DaVita HealthCare (DVA) experienced significant underperformance, declining 2.4% on the day and 4.15% over the past month, contrasting sharply with the S&P 500's gains of 0.58% and 3.68% respectively. This recent stock weakness occurred despite a mildly positive sentiment signal for the company, suggesting a potential market mispricing or reaction to broader sector dynamics not detailed. Fundamentally, DVA exhibits robust growth projections, with consensus estimates forecasting a 27.03% year-over-year increase in quarterly EPS to $3.29 and a 4.27% rise in revenue to $3.4 billion. Annual forecasts also remain strong, anticipating EPS growth of 12.91% to $10.93 and revenue growth of 5.01% to $13.46 billion, yet the Zacks Consensus EPS estimate has remained unchanged over the past month, leading to a Zacks Rank 3 (Hold). Valuation metrics indicate DVA trades at a substantial discount relative to its industry, with a Forward P/E of 11.99 compared to the industry average of 20.55. Furthermore, its PEG ratio of 0.94 is considerably lower than the industry's 1.95, implying favorable growth-adjusted valuation within the top 16% ranked Medical - Outpatient and Home Healthcare industry.
AI-powered research, real-time alerts, and portfolio analytics for institutional investors.
Request a DemoOverall Sentiment
mildly positive
Sentiment Score
0.25
Ticker Sentiment
