DaVita(US:DVA) ZACKS·2026-01-08 00:00Core Viewpoint - DaVita HealthCare is experiencing a decline in stock performance, with a notable focus on its upcoming earnings report which is expected to show significant growth in earnings per share (EPS) and revenue compared to the previous year [1][2]. Company Performance - DaVita HealthCare's stock closed at $111.01, down 3.23% from the previous day, underperforming the S&P 500 and the Dow [1]. - Over the past month, the stock has depreciated by 1.67%, while the Medical sector gained 0.82% and the S&P 500 gained 1.19% [1]. Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $3.34, reflecting a 49.11% increase year-over-year, with revenue expected to reach $3.53 billion, a 6.99% increase from the same quarter last year [2]. - For the entire fiscal year, earnings are projected at $10.52 per share, indicating an 8.68% increase, while revenue is expected to remain flat at $13.55 billion [3]. Analyst Forecasts - Investors should monitor recent revisions to analyst forecasts, as positive estimate revisions are seen as a favorable indicator for business outlook [3]. - The Zacks Rank system currently rates DaVita HealthCare at 3 (Hold), with the consensus EPS projection remaining unchanged over the past 30 days [5]. Valuation Metrics - DaVita HealthCare has a Forward P/E ratio of 8.9, which is significantly lower than the industry average of 18.1, indicating a potential undervaluation [6]. - The company also has a PEG ratio of 0.71, compared to the industry average of 1.78, suggesting that the stock may be undervalued relative to its expected earnings growth [7]. Industry Context - The Medical - Outpatient and Home Healthcare industry, which includes DaVita HealthCare, holds a Zacks Industry Rank of 59, placing it in the top 25% of over 250 industries [8].