Is DaVita Stock Underperforming the S&P 500?

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Headquartered in Denver, Colorado, DaVita Inc. (DVA) provides kidney dialysis services for patients suffering from chronic kidney failure. Valued at $10.3 billion by market cap, the company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers.
Companies worth $10 billion or more are generally described as 'large-cap stocks,' and DVA perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the medical care facilities industry. Its scale, operating over 3,000 dialysis centers nationwide, enables cost efficiencies, strong brand recognition, and a vast clinical network. DaVita benefits from long-term relationships with nephrologists and payors, including value-based care arrangements with Medicare and commercial insurers, which help stabilize revenue.
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Despite its notable strength, DVA slipped 24.1% from its 52-week high of $179.60, achieved on Jan. 31. Over the past three months, DVA stock has declined 8%, underperforming the S&P 500 Index's ($SPX) 6.3% uptick during the same time frame.
In 2025, DVA has plunged 8.8%, underperforming $SPX's YTD gains of 2.4%. Moreover, the stock dipped 3.6% over the past 52 weeks, trailing $SPX's 10.3% returns.
To confirm the bearish trend, DVA has been trading below its 50-day and 200-day moving averages since mid-February, with slight fluctuations.
On May 12, DVA shares rose marginally after reporting its Q1 results. The company reported revenue of $3.2 billion, reflecting a 5% increase compared to the same quarter last year, driven by higher treatment volumes and favorable changes in commercial mix. However, its adjusted earnings per share declined 11.5% year-over-year to $2, primarily due to increased operating expenses, including labor and supply costs.
Top rival Fresenius Medical Care AG (FMS) has taken the lead over DVA, showing resilience with 39.9% gains over the past 52 weeks and a 19.9% year-to-date increase.
The stock has a consensus 'Hold' rating from the eight analysts covering it, and the mean price target of $167.14 suggests a potential upside of 22.6% from current price levels.
On the date of publication, Kritika Sarmah 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. This article was originally published on Barchart.com