DaVita, a leading provider of kidney care services in the U.S., is one of seven medical-sector names on this week's update of the IBD Breakout Stocks Index. While closing in on a new buy point, DaVita stock joins two other names in the broad medical sector in or near buy zones of their own.
They include biotech Argenx and generic-drug maker Collegium Pharmaceutical.
In addition to those medical-sector stocks in or near buy zones, four more have already broken out and climbed beyond buy range. Biotech firms Halozyme Therapeutics and Alnylam Pharmaceuticals have already broken out and are now extended. Globus Medical, which develops technologies to help patients with spinal disorders.
PACS Group, a provider of post-acute health care facilities and services, also fits that bill. PACS stock has soared since it's IPO in April.
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DaVita In Demand Among Top Fund Managers
One of the largest providers of kidney care services in the U.S., DaVita cares for patients at every stage of kidney disease. That includes slowing the progression of kidney disease to helping support transplants. DaVita also provides hospital care and dialysis at home.
The company operates over 3,000 outpatient dialysis centers, of which more than 2,600 are located in the U.S. DaVita also has a global footprint, with more than 360 centers spread across 11 other countries.
DaVita sports a solid 94 Composite Rating. A 1.3 up/down volume ratio shows demand for DaVita stock. Plus, 44 funds with an A+ rating from Investor's Business Daily have reported a position in the stock.
Steady and reliable growth helps drive that demand. DaVita has delivered quarterly revenue gains north of $3 billion in each of the last five quarters. Analysts expect that to continue in each of the next four reports as well. In the second quarter, DaVita generated 6% sales growth to roughly $3.19 billion.
The dialysis leader has posted four straight quarters of strong double-digit earnings growth, including a 50% rise to $2.59 per share in Q2. Analysts see a 5% slowdown in earnings in Q2, but forecast a 20% gain to $9.76 per share for the full year. For 2025, Wall Street expects a 16% increase to $11.32 a share. Estimates for both years were recently revised higher.
DaVita Stock Develops New Buy Point
With second-quarter earnings in the bag, DaVita has retaken its 50-day moving average as it continues to work on a second-stage flat base with a 147.93 buy point. On Wednesday, the stock jumped into buy range in above-average and rising volume.
The relative strength line remains below a 52-week high but has shot higher in a sign of rising market leadership.
The budding breakout has shares of DaVita notching an all-time high.
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