DaVita Stock: Is Wall Street Bullish or Bearish?

Core Viewpoint - DaVita Inc. is a leading healthcare provider in kidney care services, facing challenges from rising costs and a recent ransomware attack, but has shown strong quarterly performance leading to a year-to-date stock increase of 24% [1][2]. Company Overview - DaVita Inc. specializes in kidney care services, including dialysis treatments for chronic kidney failure patients, and is headquartered in Denver, Colorado with a market capitalization of $9.94 billion [1]. Stock Performance - Over the past year, DaVita's stock has declined by 18.2%, but it has rebounded with a 24% increase year-to-date [2]. - The stock reached a 52-week low of $101 on January 14, but has since increased by 39.4% from that level [2]. - In comparison, the S&P 500 Index gained 14% over the same period, indicating underperformance relative to the broader market [3]. Financial Results - DaVita reported a 9.9% year-over-year increase in Q4 revenue to $3.62 billion, driven by a 9% growth in dialysis patient service revenues to $3.40 billion [3]. - The company anticipates headwinds due to the expiration of the Affordable Care Act, but expects to offset these challenges with the elimination of cyber-incident impacts in 2025 [3]. Earnings Projections - Analysts expect DaVita's EPS to increase by 20.5% year-over-year to $2.41 for the current quarter, with further annual increases projected to $14.16 in fiscal 2026 and $16.90 in fiscal 2027 [4]. Analyst Ratings - Among eight Wall Street analysts covering DaVita, the consensus rating is a "Hold," with two "Strong Buy" ratings, five "Holds," and one "Moderate Sell" [5]. - The ratings configuration has become slightly more bullish, with the number of "Strong Buy" ratings increasing from one to two [5].