DaVita HealthCare (DVA) Outpaces Stock Market Gains: What You Should Know

In the latest close session, DaVita HealthCare (DVA) was up +1.94% at $152.21. The stock exceeded the S&P 500, which registered a gain of 1.15% for the day. Elsewhere, the Dow saw an upswing of 1.38%, while the tech-heavy Nasdaq appreciated by 1.38%.

Shares of the kidney dialysis provider witnessed a loss of 0.94% over the previous month, beating the performance of the Medical sector with its loss of 8.2%, and the S&P 500's loss of 5.69%.

Investors will be eagerly watching for the performance of DaVita HealthCare in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.41, indicating a 20.5% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.3 billion, reflecting a 2.36% rise from the equivalent quarter last year.

DVA's full-year Zacks Consensus Estimates are calling for earnings of $14.16 per share and revenue of $14.11 billion. These results would represent year-over-year changes of +31.35% and +3.41%, respectively.

Investors should also note any recent changes to analyst estimates for DaVita HealthCare. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. DaVita HealthCare currently has a Zacks Rank of #2 (Buy).

Investors should also note DaVita HealthCare's current valuation metrics, including its Forward P/E ratio of 10.55. Its industry sports an average Forward P/E of 17.33, so one might conclude that DaVita HealthCare is trading at a discount comparatively.

One should further note that DVA currently holds a PEG ratio of 0.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. DVA's industry had an average PEG ratio of 1.83 as of yesterday's close.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 194, positioning it in the bottom 21% of all 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.

To follow DVA in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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