A study of analyst recommendations at the major brokerages shows that DaVita Inc (DVA - Get Report) is the #48 broker analyst pick among those stocks screened by The Online Investor for strong stock buyback activity. To make that list, a stock must have repurchased at least 5% of its outstanding shares over the trailing twelve month period. In forming the rank, the analyst opinions from the major brokerage houses were tallied, and averaged; then, the list of stocks with strong buyback activity was ranked according to those averages.Investors are often keenly interested in knowing which companies are buying back their own stock, because companies often will only make such a move if they feel their stock is undervalued. DaVita Inc is a company with strong buyback activity that is also considered a compelling buy by analysts; a bullish investor could take this to mean that sharp analyst minds came to the same bullish conclusion as the company itself that the stock is a good value, and therefore the stock should do well in the future. Analysts studying companies buying back their own stock will also factor into their analysis that future earnings will now be spread over a smaller share count, thereby increasing the per-share earnings the remaining shares will enjoy, versus what that same number would have been absent the stock buyback activity. According to the ETF Finder at ETF Channel, DVA makes up 2.81% of the iShares U.S. Healthcare Providers ETF (IHF) which is trading relatively unchanged on the day Monday. DVA operates in the Diagnostics sector, among companies like Express Scripts Holding Co (ESRX) which is up about 1% today, and Fresenius Medical Care (FMS) trading up by about 0.3%. Below is a three month price history chart comparing the stock performance of DVA, versus ESRX and FMS. DVA is currently trading up about 0.3% midday Monday.
More from Stocks
WeWork Might Go Public as Soon as September: Report
WeWork Cos. is reportedly negotiating a debt deal that could allow it to go public sooner than expected.
Snap Execs Attribute User Growth to 'Gender Swap' And Other Viral Filters
Snap's blowout quarter included an addition of 13 million new users, and a beat on both the top and bottom lines.
Alphabet, Amazon, Facebook, Apple Slump After Hours on New DOJ Probe
The latest Justice Department investigation probing whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition.
Staffing Firm Robert Half Higher as Results Meet Estimates
`Global talent shortages persist across our professional disciplines, particularly in the U.S.,' CEO says.