DaVita Inc. Leads Dialysis Sector with Strong Stock Performance
Company Profile
Headquartered in Denver, Colorado, DaVita Inc. (DVA) stands out as a key provider of dialysis services in the United States for patients battling chronic kidney failure or end-stage renal disease (ESRD). The company boasts a market capitalization of $13.1 billion and offers diverse ancillary services including international dialysis, pharmacy and infusion therapy, disease management, vascular access, ESRD clinical research, and physician support.
Impressive Stock Growth
Over the past year, DaVita’s stock has significantly outperformed the broader market. DVA shares have surged 69.7%, while the S&P 500 Index ($SPX) increased by 30.4%. In 2024 alone, DVA stock is up 53.1%, compared to a 23.1% return for the S&P 500.
Focusing on the health care sector, DaVita has outpaced the SPDR S&P Health Care Services ETF (XHS), which has seen a gain of only 9.4% over the past year and 3% thus far in 2024.
Recent Earnings Report
On October 29, DaVita reported its Q3 earnings, revealing a drop of 10.8% in stock price during the next trading session. The reported earnings per share (EPS) of $2.59 fell short of the expected $2.72. Although revenues benefited from higher reimbursement rates and increased inpatient dialysis treatments, these gains were overshadowed by the profit miss.
For the fiscal year ending in December, analysts anticipate DaVita’s EPS to increase by 14.6% year-over-year to $9.71. DaVita’s earnings history has shown variability; it exceeded consensus estimates in three out of the last four quarters but missed in one instance.
Analyst Ratings
Currently, DaVita holds a consensus “Hold” rating. Among eight analysts reviewing the stock, one suggests a “Strong Buy,” six recommend a “Hold,” and one rates it a “Moderate Sell.”
This configuration has remained stable in recent months.
Price Target Insights
On November 4, analyst Andrew Mok from Barclays PLC (BCS) reaffirmed a “Hold” rating on DaVita, setting a price target of $164. This target represents a 1.7% premium over current market prices, while the highest target on the Street of $186 suggests a potential upside of 16%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
