Concentra Stock Slips Despite Deal to Acquire Pivot Onsite Innovations

Concentra Group Holding Parent, Inc. CON recently announced a definitive agreement to acquire Pivot Onsite Innovations from Athletico Physical Therapy. Pivot operates over 200 onsite health clinics in more than 40 states and is a prominent player in the onsite healthcare space.With this acquisition, Concentra reinforces its leadership in occupational health by expanding its reach in the onsite care segment. Pivot’s extensive network of clinics is set to enhance Concentra’s ability to deliver timely, employer-based healthcare, improve workforce well-being, and streamline health services across diverse workplace settings.Likely Trend of CON Stock Following the NewsFollowing the announcement, shares of the company moved south 2.6% and closed at $19.83 yesterday. In the year-to-date period, CON’s shares have gained 0.3% against the industry’s 3% decline. The S&P 500 decreased 10.5% in the same time frame.However, in the long run, Concentra’s acquisition of Pivot Onsite Innovations can boost CON shares by significantly expanding its footprint in the onsite healthcare market, a sector with rising demand as employers increasingly prioritize workforce health and safety. The deal enhances Concentra’s service capabilities and geographic reach, potentially driving revenue growth, operational efficiencies, and stronger relationships with large-scale employers, all of which can contribute to sustained investor confidence and upward stock momentum.Meanwhile, CON currently has a market capitalization of $2.6 billion. The company expects its earnings to witness growth of 7.5% in the next five years.Image Source: Zacks Investment ResearchMore on CON’s Acquisition DealThe onsite healthcare market is witnessing growing demand as employers increasingly recognize the value of providing immediate, accessible care within the workplace. Onsite clinics not only reduce time away from work for medical visits but also support preventive care, employee wellness, and occupational health programs tailored to specific industries. Concentra is widely recognized as a leading provider of occupational health services, operating a broad national network of around 620 health centers and over 150 onsite clinics at employer locations. With the acquisition of Pivot Onsite Innovations, Concentra’s onsite clinic network will grow significantly to about 350 clinics across more than 40 states.This acquisition is poised to significantly benefit Concentra by scaling up its Onsite Health operations, expanding service reach, and enhancing its ability to provide comprehensive occupational healthcare solutions. Pivot Onsite Innovations brings more than two decades of experience in delivering personalized, high-quality care, along with expertise in wellness, prevention, and performance services for leading employers nationwide.The deal values Pivot Onsite Innovations at $55 million, with the final amount subject to adjustments outlined in the Purchase Agreement. Concentra plans to fund the acquisition through a mix of available cash and its existing revolving credit facility. The transaction is anticipated to close in the second quarter of 2025, pending customary closing conditions.CON’s Favorable Industry ProspectsPer a report by Coherent Market Insights, the global occupational health market is estimated to be valued at $5.45 Bn in 2025 and is expected to reach $8.47 Bn in 2032, exhibiting a CAGR of 6.5% from 2025 to 2032.Growth of the occupational health services market is being driven by increasing employer focus on employee well-being, the rising prevalence of chronic conditions, and the need for workplace safety and productivity.CON’s Zacks Rank & Other Stocks to ConsiderCON carries a Zacks Rank #2 (Buy) at present.Some other top-ranked stocks from the broader medical space are AngioDynamics ANGO, Veeva Systems VEEV and Masimo MASI.AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of 3 cents against the Zacks Consensus Estimate of a loss of 13 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 Composite’s 10.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 70.9%.Veeva Systems, sporting a Zacks Rank #1 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.9%.Masimo, currently sporting a Zacks Rank #1, reported a fourth-quarter 2024 adjusted EPS of $1.80, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $600.7 million topped the Zacks Consensus Estimate by 0.8%.MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6%. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 14.4%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngioDynamics, Inc. (ANGO): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report Veeva Systems Inc. (VEEV): Free Stock Analysis Report Concentra Group Holdings Parent, Inc. (CON): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks