DaVita Medical Group, a subsidiary of Fortune 500 company DaVita Inc. (DVA - Free Report) , is consistently making efforts to expand inorganically across the U.S. In line with this, it recently acquired Dr. Rahn Shaw's practices, Park Avenue Medical, Inc. and Winter Park Health Center, Inc., each located in Orlando.
Notably, Dr. Shaw's practices have been affiliated with DaVita Medical Group since 2005. It offersquality care to patients across all ages from pediatrics to geriatrics. The acquisitions were completed on Jul 1, 2017, and the practices will remain under the brand "DaVita Medical Group."
The company expects this acquisition to help strengthen its foothold in Orlando.
Over the last six months, Davita has been observed to underperform the Zacks categorized Medical - Outpatient and Home Healthcare industry. As per the latest share price movement, the company has gained 0.5%, as compared to the 5.9% gain of the broader industry. However, investors’ confidence may get a boost from the company’s consistent efforts to expand through strategic merger and acquisitions, which will bolster revenues over time.
Recently, The Everett Clinic Medical Group, a medical group within the DaVita Medical Group division, has revealed plans to buy a Kirkland-based family practice clinic and open two new clinics in Bothell and Woodinville this year.
Also, HealthCare Partners, a unit within DaVita Medical Group, and Magan Medical Clinic, a respected multispecialty medical group in Los Angeles County's San Gabriel Valley, recently announced that they entered into a definitive agreement, per which Magan will join HealthCare Partners.
DaVita announced that it entered into a definitive agreement, per which Magan will join HealthCare Partners, a division of DaVita.
Of late, HealthCare Partners Nevada, part of DaVita Medical Group, announced the acquisition of WellHealth Quality Care, a multi-specialty medical group and accountable care organization, by one of its affiliated entities.
Zacks Rank & Key Picks
DaVita currently carries a Zacks Rank #4 (Sell). A few better-ranked medical stocks are Mesa Laboratories, Inc. (MLAB - Free Report) , Edwards Lifesciences Corp. (EW - Free Report) and Align Technology, Inc. (ALGN - Free Report) . Notably, Mesa Laboratories and Edwards Lifesciences sport a Zacks Rank #1 (Strong Buy), while Align Technology carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Mesa Laboratories has a positive earnings surprise of 2.84% for the last four quarters. The stock has added roughly 9.1% over the last three months.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has gained around 21.3% over the last three months.
Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has added roughly 32.1% over the last three months.
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