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DaVita Kidney Care Opens 150000-Square-Foot Campus in DeLand

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DaVita Inc.’s (DVA - Free Report) Kidney Care division recently opened a 150,000 square-foot campus for DaVita Labs in DeLand, FL, with a view to serve DaVita dialysis clinics and their patients. This is the company’s only laboratory in the United States.

Following the announcement, shares of DaVita rose 5.6% to $71.33, the next day. However, over the past month, the stock has declined 2.3% compared with the industry’s 0.3% decline and the S&P 500 index’s rise of 1.5%.

The stock currently has a Zacks Rank #3 (Hold).

The DeLand laboratory is designed to increase the volume of tests processed daily and provide enhanced test capacity. Per management, the laboratory will help dialysis caregivers across the country be better prepared.

DaVita Kidney Care Services in Focus

DaVita Kidney Care, an operating division of DaVita, focuses on providing quality dialysis services to patients diagnosed with End Stage Renal Disease (ESRD).

The company regularly acquires dialysis centers which have steadily boosted its top line. DaVita has expanded its reach in markets of Brazil, China, Colombia, Germany, India, Malaysia, Netherlands, Poland, Portugal and Saudi Arabia through alliances as well as acquisitions of dialysis centers.

Meanwhile, in the wake of Hurricane Florence, the company recently activated its emergency response plan in North Carolina, South Carolina and Virginia. It focuses on dialyzing thousands of patients ahead of the storm in more than 300 centers in approximately 200 cities.

In the last reported quarter, the company’s Kidney Care business accounted for a significant 99.3% of total revenues.

Market Prospects

University of California, San Francisco’s Kidney Project, states that an estimated 2 million patients worldwide are affected by ESRD every year.

Furthermore, a study by Allied Market Research validates that the global dialysis market is estimated to reach a worth of $118,512 million by 2023 at a CAGR of 4.5%.

Thus, the latest move is likely to fortify DaVita’s position in the kidney care space.

Key Picks

A few better-ranked stocks in the broader medical space are athenahealth , Intuitive Surgical (ISRG - Free Report) and Masimo Corporation (MASI - Free Report) .

athenahealth has a long-term expected earnings growth rate of 17.6%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Intuitive Surgical’s expected long-term earnings growth rate is 14.7%. The stock has a Zacks Rank #2 (Buy).

Masimo’s long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2.

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