DaVita HealthCare (DVA) closed the most recent trading day at $173.77, moving +0.32% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.47%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq decreased by 0.51%.
Coming into today, shares of the kidney dialysis provider had gained 15.82% in the past month. In that same time, the Medical sector gained 3.2%, while the S&P 500 gained 1.67%.
Analysts and investors alike will be keeping a close eye on the performance of DaVita HealthCare in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.21, indicating a 18.18% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.25 billion, indicating a 3.47% upward movement from the same quarter last year.
Investors might also notice recent changes to analyst estimates for DaVita HealthCare. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, DaVita HealthCare holds a Zacks Rank of #1 (Strong Buy).
In the context of valuation, DaVita HealthCare is at present trading with a Forward P/E ratio of 15.41. This valuation marks a discount compared to its industry's average Forward P/E of 22.2.
We can also see that DVA currently has a PEG ratio of 0.84. 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. The Medical - Outpatient and Home Healthcare industry currently had an average PEG ratio of 1.92 as of yesterday's close.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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