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DaVita Inc. (DVA) Soars to 52-Week High, Time to Cash Out?
DVADaVita(DVA) ZACKS·2024-09-13 14:16

Stock Performance - DaVita HealthCare shares have increased by 5 1% over the past month and hit a new 52-week high of 16082[1]−Thestockhasgained505160 82 [1] - The stock has gained 50 5% since the start of the year compared to the 11 1% move for the Zacks Medical sector and the 17 5% return for the Zacks Medical - Outpatient and Home Healthcare industry [1] Earnings and Revenue - DaVita HealthCare reported EPS of 2 59 versus the consensus estimate of 247initslastearningsreportonAugust62024andbeattheconsensusrevenueestimateby0742 47 in its last earnings report on August 6 2024 and beat the consensus revenue estimate by 0 74% [2] - For the current fiscal year the company is expected to post earnings of 9 99 per share on 128billioninrevenuesrepresentinga179512 8 billion in revenues representing a 17 95% change in EPS and a 5 43% change in revenues [3] - For the next fiscal year the company is expected to earn 11 42 per share on 1331billioninrevenuesrepresentingyear−over−yearchangesof143713 31 billion in revenues representing year-over-year changes of 14 37% and 3 97% respectively [3] Valuation Metrics - DaVita HealthCare trades at 15 8X current fiscal year EPS estimates compared to the peer industry average of 24 1X [7] - The stock trades at 9 4X on a trailing cash flow basis versus its peer group's average of 14 2X and has a PEG ratio of 0 9 [7] Zacks Style Scores and Rank - DaVita HealthCare has a Value Score of A Growth Score of C and Momentum Score of D resulting in a VGM Score of B [6] - The company currently has a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates [8] Industry Comparison - The Pennant Group Inc (PNTG) a peer in the industry has a Zacks Rank of 2 (Buy) with a Value Score of C Growth Score of B and Momentum Score of B [9] - PNTG beat the consensus earnings estimate by 14 29% last quarter and is expected to post earnings of 0 92 per share on revenue of $677 7 million for the current fiscal year [10] - Shares of PNTG have gained 6% over the past month and trade at a forward P/E of 36 2X and a P/CF of 42 56X [11] - The Medical - Outpatient and Home Healthcare industry is in the top 18% of all industries indicating favorable conditions for both DVA and PNTG [11]