DaVita Inc. (DVA) is a number one healthcare supplier specializing in kidney care companies, together with dialysis therapies for sufferers with persistent kidney failure. Headquartered in Denver, Colorado, it operates outpatient facilities worldwide. The corporate has a market capitalization of $9.94 billion.
DaVita’s inventory has been below stress over the previous 12 months on account of rising prices, exacerbated by a ransomware assault that resulted in a knowledge breach affecting 2.7 million people. Over the previous 52 weeks, the inventory has declined 18.2%. Nevertheless, after reporting robust quarterly outcomes, it’s up 24% year-to-date (YTD). DaVita’s shares had reached a 52-week low of $101 on Jan. 14, however are up 39.4% from that stage.
Alternatively, the broader S&P 500 Index ($SPX) has gained 14% and 1.3% over the identical intervals, respectively, indicating that whereas the inventory has underperformed the broader market over the previous 12 months, it has outperformed YTD. Subsequent, we examine the inventory with its personal sector. The State Avenue Well being Care Choose Sector SPDR ETF (XLV) has elevated 7.2% over the previous 52 weeks and 1.9% YTD, exhibiting the identical development.
On Feb. 2, DaVita reported its fourth-quarter and financial 2025 outcomes. Because the outcomes had been higher than anticipated, the corporate’s inventory rose 21.2% intraday on Feb. 3. Its This autumn income elevated 9.9% year-over-year (YOY) to $3.62 billion, which relies on a 9% progress in dialysis affected person service revenues to $3.40 billion. With the expiration of the Reasonably priced Care Act, DaVita expects some headwinds this 12 months and the subsequent. Nevertheless, that is anticipated to be offset by the elimination of the cyber-incident influence noticed in 2025.
For the present quarter, Wall Avenue analysts count on DaVita’s EPS to extend 20.5% YOY to $2.41 on a diluted foundation. EPS is anticipated to extend 31.4% yearly to $14.16 for fiscal 2026, adopted by a 19.4% enchancment to $16.90 in fiscal 2027. The corporate has a stable file of topping consensus estimates in three of the 4 trailing quarters.
Among the many eight Wall Avenue analysts overlaying DaVita’s inventory, the consensus is a “Maintain.” That’s based mostly on two “Sturdy Purchase” scores, 5 “Holds,” and one “Reasonable Promote.” The scores configuration has turn into barely extra bullish than a month in the past, with the variety of “Sturdy Purchase” scores growing from one to 2.
