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In the latest trading session, DaVita HealthCare (DVA) closed at $152.69, marking a +0.77% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.11%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 1.89%.
Shares of the kidney dialysis provider have depreciated by 4.13% over the course of the past month, outperforming the Medical sector's loss of 6.22% and lagging the S&P 500's loss of 1.7%.
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 $2.21, up 18.18% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.25 billion, indicating a 3.47% increase compared to the same quarter of the previous year.
Investors might also notice recent changes to analyst estimates for DaVita HealthCare. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DaVita HealthCare is currently a Zacks Rank #2 (Buy).
In the context of valuation, DaVita HealthCare is at present trading with a Forward P/E ratio of 13.48. This indicates a discount in contrast to its industry's Forward P/E of 20.18.
Meanwhile, DVA's PEG ratio is currently 0.74. 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 1.83.
The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.