DVA Stock Analysis — DaVita Inc.
Sector: Healthcare
AI Verdict
DaVita trades at 12.2x next year's earnings while analysts expect 21.7% EPS growth—this is cheap for the growth you're getting, and the scale moat makes those numbers more credible than most in healthcare.
Competitive Moat
DaVita operates a nationwide network of dialysis centers, benefiting from high barriers to entry due to regulatory complexity and the need for scale in payer negotiations. Its entrenched relationships with insurers and healthcare providers create switching costs that protect its market share.
Summary
DaVita's stock is deeply oversold with an RSI of 16.7, despite analysts expecting 21.7% EPS growth next year.
Where It Stands
DaVita is up 34.60% over the past year, trades at 12.2x next year’s earnings (well below the healthcare sector median of 22x), and its RSI of 16.7 signals extreme oversold conditions.
Key Metrics
- RSI: 16.7 — Oversold
- Trailing P/E: 14.8x
- Forward P/E: 12.2x
- PEG Ratio: 0.68
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Market Cap: $11.5B
- 1-Year Return: 34.60%
- 52-Week High: $247.49
- 52-Week Low: $101.00
Analyst Consensus
6 Buy · 6 Hold · 1 Sell (13 analysts)
Bull Case
With a forward P/E of 12.2x and 21.7% expected EPS growth, the stock is cheap for the growth on offer if DaVita's scale-driven moat holds.
Bear Case
If the P/E reverts to 10x (closer to value stock territory), that would mean a 18% drop from current valuation levels.
Catalyst to Watch
Watch for regulatory decisions or Medicare reimbursement updates, as any change could directly impact margins and growth expectations.