Is DaVita Inc. (DVA) A Good Stock To Buy Now?

Is DVA a good stock to buy? We came across a bullish thesis on DaVita Inc. on StockCompass's Substack. In this article, we will summarize the bulls' thesis on DVA. DaVita Inc.'s share was trading at $228.03 as of July 1st. DVA's trailing and forward P/E were 21.43 and 15.34 respectively according to Yahoo Finance.

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DaVita Inc. is one of the largest dialysis providers in the United States, serving patients with end-stage renal disease through a business model built on recurring, life-sustaining treatments that remain largely insulated from economic cycles. With an approximately 35% market share, the company benefits from a durable competitive position and stable demand, making it a defensive healthcare business capable of generating consistent cash flows regardless of broader macroeconomic conditions.

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The investment thesis strengthened following an exceptional first-quarter 2026 earnings report, where DaVita exceeded earnings expectations by 23.7% and subsequently raised its full-year guidance, reinforcing confidence in its operational momentum. A central driver of the bullish case is the company's disciplined capital allocation strategy, highlighted by the repurchase of 13.1% of its outstanding shares during fiscal 2025 and supported by a newly authorized $2 billion share buyback program.

This ongoing reduction in share count is expected to meaningfully accelerate earnings-per-share growth and enhance long-term shareholder value. Another important catalyst is the transformation of Integrated Kidney Care (IKC), which achieved its first profitable year in fiscal 2025. This milestone signals DaVita's evolution beyond a traditional dialysis provider toward a higher-value, integrated kidney care platform, creating the potential for a meaningful market re-rating.

Despite these favorable developments, the company continues to trade at an attractive valuation of 14.2x forward adjusted earnings, offers a 9.3% free cash flow yield that exceeds historical averages, and carries a PEG ratio of just 0.40x, suggesting the market has yet to fully recognize its earnings growth potential.

Supported by recession-resistant revenues, improving profitability, aggressive share repurchases, and compelling valuation metrics, DaVita represents a high-quality compounder with significant long-term upside as its capital allocation strategy and expanding care platform continue to unlock substantial per-share value.