BUY Conviction3/5 Analysis quality75/100 Price target130 now
Joseph Hogue recommends DaVita due to its leadership in kidney dialysis, a growing market. The stock trades at a significant discount to its historical price-to-sales and P/E ratios, and is a large holding of Warren Buffett's Berkshire Hathaway. A return to its long-term valuation could yield a 54% gain.
“shares her trade for just .71 times sales a 29 discount to the long-term average of one times price to sales over the last five years with a p e ratio also at a 20 discount these are the core measures of valuation that we're going to be using comparing the current price multiples against each Stock's long-term average as well as competitors to find the cheapest stocks”