10 Best Healthcare Stocks For Long-Term Investment

5. DaVita Inc. (NYSE:DVA)

Number of Hedge Fund Holders: 46 

DaVita Inc. (NYSE:DVA) is a leading kidney care provider specializing in dialysis treatments for chronic kidney disease and end-stage renal disease and stands fifth on our list of the best healthcare stocks for long-term investment. The company provides both in-center and at-home dialysis alternatives through its extensive network of dialysis facilities in the United States and abroad. The corporation offers ancillary services like laboratory tests, pharmaceutical solutions, and illness management programs in addition to billing insurance companies like Medicare, Medicaid, and private insurers.

DaVita Inc. (NYSE:DVA) ended 2024 on a strong note, showing resilience and growth. The company reported Q4 adjusted operating income of $491 million, bringing the full-year total to $1.98 billion. Adjusted EPS for Q4 was $2.24, contributing to a full-year EPS of $9.68. Free cash flow reached $281 million for the quarter and $1.16 billion for the year. U.S. treatment volume grew slightly, while revenue per treatment increased by $1 sequentially.

For 2025, DaVita Inc. (NYSE:DVA) expects adjusted operating income between $2.01 billion and $2.16 billion, reflecting a 5.2% growth at the midpoint. Treatment volume is projected to remain steady, while revenue per treatment is expected to grow by 4.5% to 5.5%. Adjusted EPS is forecasted between $10.20 and $11.30 which represents 11% growth at the midpoint.

Key developments include the transition of oral medications to the dialysis bundle starting in 2025, which is expected to benefit patients. The business also continues its share repurchase program, reinforcing its commitment to shareholder value. Additionally, the company expanded internationally, closing three out of four planned Latin American acquisitions in 2024.

As of Q4 2024, 46 hedge funds held stakes in the stock, as tracked by the Insider Monkey database. The largest stakeholder was Berkshire Hathaway with stakes worth $5.3 billion.