DaVita's (DVA, $59.31) Q2 operating income outlook comes in higher than expected
Shares of DaVita surged more than +5% in premarket trading Monday, following news of the company’s second-quarter operating income guidance exceeding analysts’ expectations.
The healthcare company reported its projection for second-quarter operating income between $460 million and $465 million - a range that is substantially higher than the FactSet consensus of $398 million.
For the full-year, the company increased its adjusted operating income guidance to between $1.64 billion and $1.70 billion, from its prior forecast of a range of $1.54 billion to $1.64 billion.
The news comes ahead of DaVita’s modified Dutch auction tender offer on up to $1.2 billion of its common stock. The auction, priced between $53.50 and $61.50 per share, will start on Monday and continue until August 16 midnight.
DVA in upward trend: 10-day moving average broke above 50-day moving average on November 22, 2024
The 10-day moving average for DVA crossed bullishly above the 50-day moving average on November 22, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 13, 2024. You may want to consider a long position or call options on DVA as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DVA just turned positive on November 12, 2024. Looking at past instances where DVA's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
DVA moved above its 50-day moving average on November 20, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DVA advanced for three days, in of 355 cases, the price rose further within the following month. The odds of a continued upward trend are .
DVA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 240 cases where DVA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for DVA moved out of overbought territory on November 27, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 similar instances where the indicator moved out of overbought territory. In of the 42 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DVA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. DVA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (11.403) is normal, around the industry mean (4.525). P/E Ratio (18.577) is within average values for comparable stocks, (71.137). Projected Growth (PEG Ratio) (1.230) is also within normal values, averaging (1.595). DVA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.026). P/S Ratio (1.058) is also within normal values, averaging (20.576).
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General Information
a provider of integrated dialysis services for patients suffering from chronic kidney failure
Industry MedicalNursingServices