In the latest trading session, DaVita HealthCare (DVA) closed at $136.47, marking a -1.93% move from the previous day. This move lagged the S&P 500’s daily loss of 0.5%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 1.28%.
Shares of the kidney dialysis provider have appreciated by 0.4% over the course of the past month, underperforming the Medical sector’s gain of 0.74% and outperforming the S&P 500’s gain of 0.1%.
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 August 6, 2024. In that report, analysts expect DaVita HealthCare to post earnings of $2.47 per share. This would mark year-over-year growth of 18.75%. Meanwhile, our latest consensus estimate is calling for revenue of $3.16 billion, up 5.43% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.62 per share and a revenue of $12.74 billion, representing 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. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing 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 holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, DaVita HealthCare is at present trading with a Forward P/E ratio of 14.46. For comparison, its industry has an average Forward P/E of 23.51, which means DaVita HealthCare is trading at a discount to the group.
One should further note that DVA currently holds a PEG ratio of 1.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. As of the close of trade yesterday, the Medical – Outpatient and Home Healthcare industry held an average PEG ratio of 2.07.
The Medical – Outpatient and Home Healthcare industry is part of the Medical sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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