DaVita Inc. (DVA) Hits Fresh High: Is There Still Room to Run?

Company Performance - DaVita HealthCare's shares have increased by 6.6% over the past month, reaching a new 52-week high of $151.05 [1] - The stock has gained 42.1% since the beginning of the year, outperforming the Zacks Medical sector's 8.6% and the Zacks Medical - Outpatient and Home Healthcare industry's 11.4% [1] Earnings and Revenue - DaVita HealthCare has consistently exceeded earnings estimates, reporting EPS of $2.59 against a consensus estimate of $2.47 in its last earnings report [2] - For the current fiscal year, the company is projected to achieve earnings of $9.90 per share on revenues of $12.79 billion, reflecting a 16.88% increase in EPS and a 5.38% increase in revenues [3] - The next fiscal year is expected to see earnings of $11.21 per share on $13.33 billion in revenues, indicating year-over-year changes of 13.22% and 4.21%, respectively [3] Valuation Metrics - DaVita HealthCare has a Value Score of A, with Growth and Momentum Scores of B, resulting in a combined VGM Score of A [6] - The stock trades at 15X current fiscal year EPS estimates, below the peer industry average of 24.1X, and at 8.9X trailing cash flow compared to the peer group's average of 13.4X [7] - The PEG ratio stands at 0.86, suggesting the company is not in the top tier from a value perspective [7] Zacks Rank - DaVita HealthCare holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - The company meets the criteria for selection based on Zacks Rank and Style Scores, indicating potential for further share price appreciation [9] Industry Comparison - The Medical - Outpatient and Home Healthcare industry is performing well, with DaVita HealthCare and peers like The Pennant Group, Inc. showing strong fundamentals [12] - The Pennant Group, Inc. has a Zacks Rank of 2 (Buy) and is expected to post earnings of $0.89 per share on revenues of $673.39 million for the current fiscal year [11]