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DaVita (DVA) Bullish Breakout

DaVita (DVA) Bullish Breakout

by | Jul 12, 2021 | Chart SetUps

DaVita (DVA) triggered out of its pullback base to start the week, the rising 55-day moving average supportive and RSI starting to also work out of its pullback trend. DVA is now working above a major volume zone and $140 a measured move target. DVA is a value name trading 13X Earnings and 11.7X FCF and is seen as a potential turnaround story after its core business suffered from mortality rates of COVID patients. DVA should see a benefit from a Medicare Advantage rule change that will allow dialysis patients to enroll freely in Medicare Advantage plans, which pay DVA a meaningfully higher rate than Medicare fee-for-service. DVA has a dominant dialysis franchise and is working on initiatives in kidney care.