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DaVita Inc. (DVA), headquartered in Denver, Colorado, provides kidney dialysis services to patients with chronic kidney failure. Valued at $9.3 billion by market cap, the company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers.
Shares of this kidney care giant have underperformed the broader market over the past year. DVA has declined 8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19.3%. In 2025, DVA stock is down 13.7%, compared to the SPX’s 8.4% rise on a YTD basis.
Narrowing the focus, DVA’s underperformance looks less pronounced compared to the SPDR S&P Health Care Services ETF (XHS). The exchange-traded fund has fell about 4% over the past year. Moreover, the ETF’s 1.1% gains on a YTD basis outshine the stock’s double-digit losses over the same time frame.
DVA's underwhelming performance can be chalked up to a notable year-over-year dip in normalized non-acquired treatment, which fell short of expectations. This downturn, coupled with a squeeze on adjusted operating margins, has put a damper on the stock's prospects.
On Aug. 5, DVA reported its Q2 results, and its shares closed down more than 9% in the following trading session. Its revenue totaled $3.4 billion, up 6.1% year over year. The company’s adjusted EPS came in at $2.95, up 47.5% from the previous quarter.
For the current fiscal year, ending in December, analysts expect DVA’s EPS to grow 12.9% to $10.93 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 eight analysts covering DVA stock, the consensus is a “Hold.” That’s based on one “Strong Buy” rating, six “Holds,” and one “Moderate Sell.”
The configuration has been consistent over the past three months.
On Aug. 8, Truist Financial Corporation (TFC) analyst David MacDonald kept a “Hold” rating on DVA but lowered the price target to $148, implying a potential upside of 14.7% from current levels.
The mean price target of $156.57 represents a 21.3% premium to DVA’s current price levels. The Street-high price target of $186 suggests an ambitious upside potential of 44.1%.
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.
