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DaVita Inc. (DVA) is a leading U.S. provider of kidney dialysis and related clinical services for patients with chronic and end-stage kidney disease. Headquartered in Denver, Colorado, it operates thousands of outpatient dialysis centers, offers home-based modalities, and runs integrated kidney care and lab services. The company has a market capitalization of $11.72 billion, which makes it a “large-cap” stock.
DaVita’s shares reached a 52-week high of $247.49 on Aug. 3, but are down 25.8% from that level. DaVita’s stock is down 12.4% over the past three months as investors take profits after a strong rally and weigh near-term volume and mix headwinds. Meanwhile, the broader S&P 500 Index ($SPX) is up 5.4% over the past three months. Therefore, DVA has clearly underperformed over this period.
Growth in its higher-margin Integrated Kidney Care platform, improving treatment volumes, and operational productivity further supported the stock over the past year. Over the past 52 weeks, the stock has gained 40.1%, while the S&P 500 index is up 16.6%. DaVita’s stock is up 61.7% year-to-date (YTD), while the broader index is up 13.4%. The company’s shares have traded above its 200-day moving average since early March but have dropped below its 50-day moving average since early August.
On Aug. 5, DaVita’s stock declined by 17.2% intraday after the company reported its Q2 results. Investors chose to focus on the decline in revenue per treatment quarter-over-quarter (QOQ). The quarter’s change was mainly due to shifts in payor mix and typical fluctuations, partly offset by seasonal effects from co-insurance and deductibles, along with higher average rates. Adjusted EPS for the quarter rose 40.1% QOQ to $4.02.
Wall Street analysts have positive views on DaVita’s bottom-line trajectory. For the current quarter, its profit is expected to increase by 50.6% YOY to $3.78 per share. For fiscal 2026, the company’s bottom line is projected to increase by 35.2% annually to $14.57 per share, followed by an 18.4% climb to $17.25 per share in fiscal 2027.
We compare DaVita’s performance with that of another medical care facilities stock, Encompass Health Corporation (EHC), which is down 2.6% over the past 52 weeks, but increased 15.7% YTD. Therefore, DaVita has clearly outperformed over these periods.
Wall Street analysts are moderately bullish on DaVita’s stock. The eight analysts covering it have a consensus rating of “Moderate Buy.” The mean price target of $224.86 implies a 22.4% upside from current levels. The Street-high price target of $270 indicates a 47% upside.
