DaVita HealthCare (DVA) Stock Dips While Market Gains: Key Facts

In the latest close session, DaVita HealthCare (DVA) was down 3.17% at $145.58. This move lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.18%.

Coming into today, shares of the kidney dialysis provider had lost 2.87% in the past month. In that same time, the Medical sector lost 6.43%, while the S&P 500 lost 4.28%.

Market participants will be closely following the financial results of DaVita HealthCare in its upcoming release. It is anticipated that the company will report an EPS of $2.41, marking a 20.5% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.3 billion, up 2.36% from the prior-year quarter.

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.

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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term 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 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 is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, DaVita HealthCare is presently being traded at a Forward P/E ratio of 10.62. Its industry sports an average Forward P/E of 17.57, so one might conclude that DaVita HealthCare is trading at a discount comparatively.

Investors should also note that DVA has a PEG ratio of 0.52 right now. 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 industry currently had an average PEG ratio of 1.79 as of yesterday's close.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 38% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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

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