What Happened?

Shares of dialysis provider DaVita Inc. (NYSE:DVA) fell 14% in the morning session after the company reported weak fourth-quarter results: DaVita narrowly exceeded analysts' revenue expectations but fell short on full-year EPS guidance. A key challenge remains patient volume, as center closures could continue to pressure growth. Overall, this quarter could have been better.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy DaVita? Access our full analysis report here, it’s free.

What The Market Is Telling Us

DaVita’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. Moves this big are rare for DaVita and indicate this news significantly impacted the market’s perception of the business.

DaVita is up 5.9% since the beginning of the year, but at $158.62 per share, it is still trading 10.6% below its 52-week high of $177.35 from February 2025. Investors who bought $1,000 worth of DaVita’s shares 5 years ago would now be looking at an investment worth $1,845.

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