🥩Your weekly free stock picks from BeefySignals!

🥩 BeefySignals Healthcare Surge & Cruise Control Rally!
🔍 Recommended date: February 20, 2026

🥩 Stock: DaVita Inc.
💹 Ticker: DVA
💼 Sector: Healthcare
🎯 Estimated return: 2.24% to 5.63%
📅 Date of maximum return: May 8, 2026 (77 days left)

What's the setup:

Technical Signal:
Our system detected three converging signals: an inside day (where today's trading range fits entirely within the prior day's range, signaling a pause in momentum), the stock being up more than 20% over the past 20 days, and closing above its 10-day moving average for seven consecutive sessions. This combination typically indicates a strong uptrend taking a brief breath before potentially resuming higher.

Recent Performance:
DaVita surged over 25% on February 4, 2026, after Q4 2025 earnings crushed expectations. The company reported $3.40 EPS versus $3.16 expected and revenue of $3.62 billion versus $3.51 billion estimated — a 9.9% year-over-year increase. The stock has since continued climbing, now up approximately 35% since early February.

Why It Matters:

• Exceptional 2026 guidance: Adjusted EPS midpoint of $14.30 (range $13.60 to $15.00), significantly exceeding prior consensus of $12.80
• Strong growth trajectory: 2026 EPS forecast to grow 30.7% year-over-year
• Attractive valuation: P/E of 11.45 and PEG ratio of 0.67 — deeply undervalued relative to growth
• Free cash flow power: $1.125 billion guided FCF midpoint for 2026
• Strategic expansion: IKC integrated kidney care division turned profitable, opening new revenue streams
• Capital returns: Aggressive buyback program supporting shareholder value
• Analyst upgrades: Multiple upgrades following earnings beat with consensus price target of $151.71

The Opportunity:
DaVita's inside day after a 35% surge is a classic high-momentum consolidation setup. The fundamentals confirm this is not speculative — it is a genuine business re-rating driven by earnings beats, upgraded guidance, and strategic growth execution.

🥩 Stock: Carnival Corporation & plc
💹 Ticker: CCL
💼 Sector: Consumer Cyclical
🎯 Estimated return: 2.24% to 5.63%
📅 Date of maximum return: May 13, 2026 (82 days left)

What's the setup:

Technical Signal:
Three signals triggered simultaneously: the close crossed below the 10-day moving average, the asset is up more than 10% over the past 20 days, and the 3-day RSI dropped below 30 — a classic short-term oversold reading within an established uptrend. This combination often signals a temporary pullback in a fundamentally strong stock, creating a potential re-entry opportunity.

Recent Performance:
Carnival reported record full-year 2025 results: revenue of $26.6 billion (up 6.4%), record adjusted net income of $3.1 billion (up over 60%), and earnings of $2.76 billion. The company also reinstated its dividend, signaling strong confidence in cash flow generation. The stock carries a "Strong Buy" consensus from 20 analysts.

Why It Matters:

• Strong 2026 guidance: Adjusted net income projected at $3.45 billion (up 12%), EBITDA at $7.6 billion
• Earnings upgrade: 2026 EPS estimate raised from $2.40 to $2.54 over past 60 days
• Fuel and FX tailwinds: $0.20 per share combined boost from lower fuel costs and favourable currency rates
• Undervalued vs. peers: P/E of 12.24 versus industry average of 16.65
• Demand strength: Net yields in constant currency up 5.4% in Q4 2025
• Analyst price targets: Range of $26 to $43, fair value estimate of $38 (16% upside from current levels)
• Dividend reinstated: Demonstrates management confidence in sustained profitability

The Opportunity:
A short-term RSI pullback after a 10%+ run in a stock with record fundamentals and strong 2026 outlook creates an attractive mean-reversion entry. The reinstatement of the dividend adds further confidence to the bullish thesis.

Remember Beefies - Stay Beefy. Stay Bullish! 🐂

Regards,

The BeefySignals Team

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