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The most recent trading session ended with DaVita HealthCare (DVA) standing at $134.97, reflecting a +1.1% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 2.51%. Meanwhile, the Dow experienced a rise of 2.66%, and the technology-dominated Nasdaq saw an increase of 2.71%.
The kidney dialysis provider's shares have seen a decrease of 11.24% over the last month, not keeping up with the Medical sector's loss of 11.09% and the S&P 500's loss of 8.86%.
Market participants will be closely following the financial results of DaVita HealthCare in its upcoming release. The company is forecasted to report an EPS of $1.75, showcasing a 26.47% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.21 billion, reflecting a 4.59% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.76 per share and a revenue of $13.46 billion, signifying shifts of +11.16% and +5.05%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for DaVita HealthCare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. DaVita HealthCare is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, DaVita HealthCare is holding a Forward P/E ratio of 12.4. For comparison, its industry has an average Forward P/E of 19.63, which means DaVita HealthCare is trading at a discount to the group.
It's also important to note that DVA currently trades at a PEG ratio of 0.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DVA's industry had an average PEG ratio of 1.94 as of yesterday's close.