Here's Why You Should Invest in DaVIta (DVA) Stock Right Now

DaVita Inc. DVA is currently one of the top-performing stocks in the MedTech space. Solid performance by the Kidney Care unit and strong fundamentals are major positives at the moment.

Shares Up

In the past year, DaVita’s shares have rallied 10% against the industry’s decline of 12.3%.

The Zacks Rank #2 (Buy) stock currently has a Growth Score of B. This reflects possibilities of outperformance over the long haul. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, are better picks than most.

For the current quarter, the Zacks Consensus Estimate for earnings per share is pegged at 97 cents, reflecting year-over-year growth of 5.43%.

Let’s delve deeper.

DaVita Inc. Price and Consensus

 

DaVita Inc. Price and Consensus | DaVita Inc. Quote

What Makes It an Attractive Pick?

Fundamental Growth Story

Since 2009, the company’s revenues have seen a CAGR of 7.5% to $10.88 billion. DaVita’s earnings have seen a CAGR of 6.8% to $3.44 over the same period.

 

Kidney Care in Focus

Last month, DaVita and the University of Chicago Medicine announced the successful implementation of the Transplant Waitlist Support Program. It has been created to help keep patients on the waiting list transplant-ready. This improves chances of success for patients undergoing a transplant.

Earlier this year, the company announced endorsement of the Standardised Outcomes in Nephrology (SONG) initiative. Notably, it aims to standardize outcomes in kidney care trials. Per management, SONG is currently developing core outcomes for hemodialysis (SONG-HD), transplantation (SONG-Tx), peritoneal dialysis (SONG-PD), children and adolescents (SONG-Kids), and polycystic kidney disease (SONG-PKD).

Overseas Presence

DaVita is steadily expanding in the international markets. In the past few years, the company has strengthened its position in the emerging and developing markets of Brazil, China, Colombia, Germany, India, Malaysia, Netherlands, Poland, Portugal and Saudi Arabia through strategic alliances as well as acquisitions of dialysis centers.

Key Picks

A few other top-ranked stocks in the broader medical space are Genomic Health GHDX, Stryker Corporation SYK and Integer Holdings Corporation ITGR.

Genomic Health has an expected earnings growth rate of 187.5%. The stock flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stryker has a projected long-term earnings growth rate of 9.7%. The stock carries a Zacks Rank #2.

Integer Holdings a long-term expected earnings growth rate of 15%. The stock carries a Zacks Rank #2.

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Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
 
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