DaVita Inc. (DVA), headquartered in Denver, Colorado, provides kidney dialysis services to patients with chronic kidney failure. Valued at $8.7 billion by market cap, the company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers.
Shares of this kidney care giant have considerably underperformed the broader market over the past year. DVA has declined 17.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.7%. In 2025, DVA stock is down 17.3%, compared to the SPX’s 14.4% rise on a YTD basis.
Narrowing the focus, DVA’s underperformance is also apparent compared to the SPDR S&P Health Care Services ETF (XHS). The exchange-traded fund has gained about 5.6% over the past year. Moreover, the ETF’s 14.9% gains on a YTD basis outshine the stock’s losses over the same time frame.
DaVita's results were impacted by lower treatment volumes due to severe flu, Hurricane Helene, and a cyber incident. Higher patient care costs and expenses from investing in technology and innovation also weighed on the results. Management is focused on cost management and innovation, but notes uncertainty surrounding government policies and variability in revenue recognition.
On Oct. 29, DVA shares closed down more than 2% after reporting its Q3 results. Its revenue stood at $3.4 billion, up 4.8% year-over-year. The company’s adjusted EPS declined 14.9% year-over-year to $2.51.
For the current fiscal year, ending in December, analysts expect DVA’s EPS to grow 8.7% to $10.52 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the nine analysts covering DVA stock, the consensus is a “Hold.” That’s based on one “Strong Buy” rating, six “Holds,” one “Moderate Sell,” and one “Strong Sell.”
This configuration is more bearish than a month ago, with no analyst suggesting a “Strong Sell.”
On Nov. 3, Truist Financial Corporation (TFC) analyst David S Macdonald maintained a “Hold” rating on DVA and set a price target of $140, implying a potential upside of 13.2% from current levels.
The mean price target of $144 represents a 16.4% premium to DVA’s current price levels. The Street-high price target of $186 suggests an ambitious upside potential of 50.4%.
On the date of publication, Neha Panjwani 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.
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