DaVita HealthCare (DVA) Outperforms Broader Market: What You Need to Know

DaVita HealthCare (DVA) closed at $106.30 in the latest trading session, marking a +2.28% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.16% for the day. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.18%. Coming into today, shares of the kidney dialysis provider had lost 9.41% in the past month. In that same time, the Medical sector lost 1.32%, while the S&P 500 lost 0.42%. Analysts and investors alike will be keeping a close eye on the performance of DaVita HealthCare in its upcoming earnings disclosure. The company is expected to report EPS of $3.24, up 44.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.53 billion, up 6.99% from the prior-year quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.7 per share and a revenue of $13.55 billion, signifying shifts of +10.54% and 0%, respectively, from the last year. Investors should also pay attention to any latest changes in analyst estimates for DaVita HealthCare. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. DaVita HealthCare is currently sporting a Zacks Rank of #3 (Hold). In the context of valuation, DaVita HealthCare is at present trading with a Forward P/E ratio of 8.06. This signifies a discount in comparison to the average Forward P/E of 18.73 for its industry. Also, we should mention that DVA has a PEG ratio of 0.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. DVA's industry had an average PEG ratio of 1.8 as of yesterday's close. The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 37% of over 250 industries. The Zacks Industry Rank gauges the strength of our 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. You can find more information on all of these metrics, and much more, on Zacks.com. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DaVita Inc. (DVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks