DaVita HealthCare (DVA) Stock Drops Despite Market Gains: Important Facts to Note

In the latest close session, DaVita HealthCare (DVA) was down 3.26% at $132.26. The stock trailed the S&P 500, which registered a daily gain of 0.3%. At the same time, the Dow lost 0.48%, and the tech-heavy Nasdaq gained 0.03%. Coming into today, shares of the kidney dialysis provider had gained 3.51% in the past month. In that same time, the Medical sector gained 7.07%, while the S&P 500 gained 2.09%. Market participants will be closely following the financial results of DaVita HealthCare in its upcoming release. The company is predicted to post an EPS of $3.29, indicating a 27.03% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.4 billion, indicating a 4.27% growth compared to the corresponding quarter of the prior year. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.93 per share and a revenue of $13.46 billion, indicating changes of +12.91% and +5.01%, respectively, from the former year. Investors might also notice recent changes to analyst estimates for DaVita HealthCare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, DaVita HealthCare is carrying a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that DaVita HealthCare has a Forward P/E ratio of 12.51 right now. This represents a discount compared to its industry average Forward P/E of 20.96. Meanwhile, DVA's PEG ratio is currently 0.98. 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 1.94 at yesterday's closing price. The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 39% echelons of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>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