We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DaVita Ties Up With Inspira Health, Expands in South Jersey
Read MoreHide Full Article
Denver, CO-based DaVita HealthCare Partners Inc. (DVA - Free Report) , a leading provider of dialysis services in the U.S., announced a joint venture with Inspira Health Network to expand dialysis services at the Bridgeton, Millville and Vineland centers of South Jersey.
We note that, DaVita represents a negative year-to-date return of almost 7.9%, wider than the Zacks categorized Home Care Market sub-industry’s return of roughly -6.8% and S&P 500’s return of 7.2% over the same time frame. In fact, post the last quarter’s unsatisfactory earnings performance, shares further slashed, adding to our woes. However, we are positive about the recent alliance with Inspira. Although, shares of DaVita dropped almost 0.8% to close at $64.23 following the news release due to the lackluster market trend.
The estimate revision trend, on the other hand, seems quite favorable for the stock at this moment, with two estimates moving up in the last one month and one going down, indicating chances of recovery ahead. Notably, the current year estimate for the stock stands at $3.75 per share.
Coming back to the deal, we note that, Inspira is a non-profit health care organization which operates across the communities in southern New Jersey. Notably, all employees of Inspira have been offered positions in the latest venture. No other terms of the deal have been disclosed.
Apart from partnering with the three medical centers of Inspira, DaVita aims at exploring new opportunities across the nation and adjacent communities to address the unmet needs of dialysis care.
In fact, the global trends of the dialysis markets (hemodialysis & peritoneal) are very lucrative, as it is expected to multiply at a CAGR of 6.2%, reaching a worth of $93.83 billion by 2020 (Markets And Markets).
Our Take
DaVita has been a pioneer in kidney care and developments like these fortify the company’s footprint across markets. Per management, The Centers for Medicare & Medicaid Services (CMS) has recognized DaVita as a clinical leader in the CMS Five-Star Quality Rating System for the third year in a row.
DaVita holds a long-term expected earnings growth of almost 10.2% and an earnings yield of 5.8%, better than the industry average of 4.4%. Of the recent developments, the partnership with Rock Health is notable in our view.
Zacks Rank & Key Picks
Currently, DaVita has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and HealthSouth Corporation . Addus HomeCare and LHC Group sport a Zacks Rank #1 (Strong Buy) while HealthSouth carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 51.8%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 7.7% in the last one month.
HealthSouth has an expected earnings growth of almost 13.2%. The company posted a promising year-to-date return of 17.4%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DaVita Ties Up With Inspira Health, Expands in South Jersey
Denver, CO-based DaVita HealthCare Partners Inc. (DVA - Free Report) , a leading provider of dialysis services in the U.S., announced a joint venture with Inspira Health Network to expand dialysis services at the Bridgeton, Millville and Vineland centers of South Jersey.
We note that, DaVita represents a negative year-to-date return of almost 7.9%, wider than the Zacks categorized Home Care Market sub-industry’s return of roughly -6.8% and S&P 500’s return of 7.2% over the same time frame. In fact, post the last quarter’s unsatisfactory earnings performance, shares further slashed, adding to our woes.
However, we are positive about the recent alliance with Inspira. Although, shares of DaVita dropped almost 0.8% to close at $64.23 following the news release due to the lackluster market trend.
The estimate revision trend, on the other hand, seems quite favorable for the stock at this moment, with two estimates moving up in the last one month and one going down, indicating chances of recovery ahead. Notably, the current year estimate for the stock stands at $3.75 per share.
Coming back to the deal, we note that, Inspira is a non-profit health care organization which operates across the communities in southern New Jersey. Notably, all employees of Inspira have been offered positions in the latest venture. No other terms of the deal have been disclosed.
Apart from partnering with the three medical centers of Inspira, DaVita aims at exploring new opportunities across the nation and adjacent communities to address the unmet needs of dialysis care.
DAVITA INC Price
DAVITA INC Price | DAVITA INC Quote
In fact, the global trends of the dialysis markets (hemodialysis & peritoneal) are very lucrative, as it is expected to multiply at a CAGR of 6.2%, reaching a worth of $93.83 billion by 2020 (Markets And Markets).
Our Take
DaVita has been a pioneer in kidney care and developments like these fortify the company’s footprint across markets. Per management, The Centers for Medicare & Medicaid Services (CMS) has recognized DaVita as a clinical leader in the CMS Five-Star Quality Rating System for the third year in a row.
DaVita holds a long-term expected earnings growth of almost 10.2% and an earnings yield of 5.8%, better than the industry average of 4.4%. Of the recent developments, the partnership with Rock Health is notable in our view.
Zacks Rank & Key Picks
Currently, DaVita has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and HealthSouth Corporation . Addus HomeCare and LHC Group sport a Zacks Rank #1 (Strong Buy) while HealthSouth carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 51.8%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 7.7% in the last one month.
HealthSouth has an expected earnings growth of almost 13.2%. The company posted a promising year-to-date return of 17.4%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>