XLV - DaVita: A Stellar Run With EPS Upside Likely Ahead Downgrading On Valuation
2024-05-31 12:11:57 ET
Summary
- The Healthcare sector has been underperforming the S&P 500 in 2024, but there have been a handful of big winners, including DaVita.
- I am downgrading the stock from buy to hold due to valuation, despite a positive technical chart and strong EPS trends ahead.
- I see DVA as a quality stock, but it's properly priced versus its history at current levels.
Heading into the summer months, it has been a cool start to the year for the Healthcare sector. The Health Care Select Sector SDPR ETF ( XLV ) is up just 4.2%, sharply underperforming the S&P 500 which is higher by 11%. What’s more, if you back out the stunning moves in GLP-1-related stocks, the area is even more uninteresting from a momentum point of view. But some stocks away from the miracle-drug niche have performed well. ...
DaVita: A Stellar Run With EPS Upside Likely Ahead, Downgrading On Valuation