What happened
Shares of Cano Health (CANO) gained a noteworthy 22% through the first three and a half days of trading this week, according to data provided by S&P Global Market Intelligence. The big gain came in response to CVS Health's (CVS -0.22%) $10.6 billion deal to buy Oak Street Health (OSH).
Late last year, CVS Health was rumored to be considering a bid for Cano Health for its primary-care medical services business. Although the rumored deal never materialized, investors have been holding out hope that Cano will eventually find a suitor. The CVS-Oak Street tie-up apparently stoked these flames, given Cano's rapid rise this week.
So what
Cano's shares have fallen by 73% over the prior 12 months. Investors have been steadily moving to the sidelines on this healthcare stock in response to the company's less-than-ideal financial situation.
To address this issue, management has reportedly been exploring a sale, according to Bloomberg. While CVS Health and Humana have both been linked to a potential merger with Cano, a deal has yet to come to fruition.
Now what
Is Cano stock worth buying right now? The company operates in nine states, and had 294,596 total members at last count. Cano thus has an economy of scale that could attract a buyer sometime soon.
That said, the healthcare provider's fundamentals aren't stellar. Therefore, this penny healthcare stock is arguably only suited for risk-tolerant investors.
