DaVita's Strong Earnings Drive Stock Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy DVA?
Source: Fool
DaVita Inc's stock surged nearly 30% this week, reaching a 20-day high after the company reported quarterly earnings that exceeded expectations.
The strong earnings performance, with projected earnings per share between $13.60 and $15 for 2026, has restored market confidence in DaVita, attracting significant investor interest. The stock's price rebound reflects recognition of its performance and potential for future growth, as it previously traded at higher forward earnings multiples.
This surge indicates a positive outlook for DaVita, suggesting that the company is well-positioned for growth in the healthcare sector despite broader market challenges.
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Analyst Views on DVA
Wall Street analysts forecast DVA stock price to rise
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 147.750
Low
144.00
Averages
162.50
High
190.00
Current: 147.750
Low
144.00
Averages
162.50
High
190.00
About DVA
DaVita Inc. is a healthcare provider focused on transforming care delivery to improve the quality of life for patients globally. The Company is a provider of kidney care services in the United States. Its United States dialysis (U.S. dialysis) and related lab services business treats patients with chronic kidney failure and end-stage kidney disease (ESKD). The Company’s robust platform delivers kidney care services and includes established nephrology and payor relationships. The Company’s international operations provide dialysis and administrative services to a total of outpatient dialysis centers. The Company’s U.S. integrated kidney care (IKC) business provides integrated care and disease management services to patients in risk-based integrated care arrangements and to additional patients in other integrated care arrangements across the United States. It also maintains a few other ancillary services and investments outside its U.S. dialysis, U.S. IKC, or international operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Strong Earnings Performance: DaVita's latest quarterly results exceeded expectations, with projected earnings per share between $13.60 and $15 for 2026, resulting in a current price-to-earnings ratio of only 9 times, indicating potential for future growth and attracting investor interest.
- Stock Price Rebound: Since the earnings release, DaVita's stock has surged over 30%, reflecting market recognition of its performance and potentially providing room for multiple expansion, as it previously traded at 13 to 14 times forward earnings.
- Buffett's Investment Strategy: Despite Berkshire Hathaway's losses on its Kraft Heinz investment, currently valued at around $7.5 billion, the planned split into two entities may present opportunities for new investors, especially as Kraft Heinz trades at a mere 9 times forward earnings, below peers.
- Healthcare Sector Challenges: UnitedHealth Group's stock has fallen from $350 to around $280, primarily due to the U.S. government's lower-than-expected Medicare payment increases; although Buffett had previously purchased shares, the current 16 times forward earnings ratio indicates market concerns about its growth trajectory, warranting caution for investors.
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