DaVita HealthCare (DVA) Laps the Stock Market: Here's Why

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DaVita HealthCare (DVA) closed the most recent trading day at $155.06, moving +1.33% from the previous trading session. This change outpaced the S&P 500's 1.1% gain on the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.

Coming into today, shares of the kidney dialysis provider had lost 8.37% in the past month. In that same time, the Medical sector lost 3.78%, while the S&P 500 gained 0.22%.

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. Our most recent consensus estimate is calling for quarterly revenue of $3.25 billion, up 3.47% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.71 per share and revenue of $12.8 billion. These totals would mark changes of +14.64% and +5.45%, respectively, from last year.

Any recent changes to analyst estimates for DaVita HealthCare should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DaVita HealthCare is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, DaVita HealthCare is presently being traded at a Forward P/E ratio of 15.76. This expresses a discount compared to the average Forward P/E of 21.96 of its industry.

It's also important to note that DVA currently trades at a PEG ratio of 0.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Medical - Outpatient and Home Healthcare industry had an average PEG ratio of 2.04.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% of all 250+ industries.