Credit: Shutterstock photoInvestors are always looking for stocks that are poised to beat at earnings season and DaVita Inc.DVA may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because DaVita is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings-with the most up-to-date information possible-is a pretty good indicator of some favorable trends underneath the surface for DVA in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 95 cents per share for DVA, compared to a broader Zacks Consensus Estimate of 91 cents per share. This suggests that analysts have very recently bumped up their estimates for DVA, giving the stock a Zacks Earnings ESP of 4.40% heading into earnings season.
DaVita HealthCare Partners Inc. Price and EPS Surprise
DaVita HealthCare Partners Inc. Price and EPS Surprise | DaVita HealthCare Partners Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here ).
Given that DVA has a Zacks Rank #3 (Hold) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for DaVita, and that a beat might be in the cards for the upcoming report.
Just Released - Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks' Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making - autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DaVita HealthCare Partners Inc. (DVA): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
