2 Specialized Healthcare Companies With Great Return Potential: Gilead Sciences, Inc. (GILD) and More

DaVita is by far the leader in diabetes treatment and is also an explosive grower favored by none other than Warren Buffet. The kidney dialysis market is growing at about 4% a year, with dominate DaVita’s consensus annual growth rate over the next five years being projected at around 12.7%. Investing in this dialysis provider is one of the best ways to play the growing global diabetes epidemic.

The bottom line

Gilead and DaVita both occupy niche markets within the healthcare sector. Both are growing revenues at a good clip and have pretty wide moats. Both companies would make good investments for the investor looking to diversify within the healthcare sector, or for the investor searching for solid growth stocks going into the future. Gilead and DaVita both look attractive when considering forward P/E ratios as well. Both companies provide drugs or services that are vital for those with diseases such as HIV, Hepatitis C, or diabetes, and this separates them from the average healthcare stock.

All financial data and company profiles obtained from Yahoo Finance

The article 2 Specialized Healthcare Companies With Great Return Potential originally appeared on Fool.com and is written by Joseph Harry.

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