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Here's Why You Should Retain DENTSPLY SIRONA (XRAY) Stock Now
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DENTSPLY SIRONA (XRAY - Free Report) is well-poised for growth on a robust product portfolio and continued focus on research and development. However, forex remains a headwind.
Shares of this Zacks Rank #3 (Hold) company have lost 30.8% compared with the industry's decline of 2% in the past year. The S&P 500 Index has lost 12.5% in the same time frame.
The company, with a market capitalization of $7.91 billion, is a global leader in the design, development, manufacture and marketing of dental consumables, dental laboratory products, dental specialty products and consumable medical device products. It anticipates its earnings to improve 3.9% over the next five years.
Image Source: Zacks Investment Research
What's Favoring the Stock?
DENTSPLY's introduction of PrimeScan, a digital impression scanner, and Primemill, among its other major products, has been driving the company's top line over the past couple of years. It bolstered the consumable areas with Surefil one, Palodent 360 and the digital denture program. The company's Astra EV Implant has been gaining momentum as well.
The company launched Primeprint, a medical-grade, highly automated 3D printer, in 2022 to bolster dentists’ workflows and practice efficiency. Apart from being an easy-to-use device, this 3D printer enables dentists to delegate tasks related to 3D printing to their staff. Primeprint provides complete integration with the CEREC system and enables dentists to produce things like night guards, surgical guides and full-scale models in a quick and inexpensive manner.
In 2021, the company launched ProTaper Ultimate, which is the first major endodontic platform innovation introduced in its endo business in more than five years. As part of a new platform, this will include new files of biosymmetric sealer and a new disinfection device.
Apart from this, the company will also introduce multiple new motor systems in the upcoming months. It will launch CEREC 5.2, a significant upgrade in Primescan, as it further enhances speed and ease of use. This CEREC 5.2 upgrade supports the new dental scanning capability and differentiates Primescan in the marketplace.
During the third quarter, DENTSPLY witnessed double-digit growth in clear aligners, solid performance in Europe, and continued strong demand for Imaging equipment.
Apart from these proven products, the company has an excellent new product pipeline that will aid its performance in 2023 and beyond. DENTSPLY initiated a comprehensive review of the entire business to improve execution, build a winning portfolio and return to growth, during 2022. Moreover, the completion of internal investigation removes a major overhang for the company.
What's Weighing on It?
DENTSPLY recorded a non-cash charge for the impairment of goodwill and intangible assets of $1.1 billion net of tax during the third quarter. The charge reflected the impact of macroeconomic factors as a result of weakened global demand, higher cost of capital, unfavorable foreign currency impacts, and increased raw material, supply chain and service costs.
Macroeconomic headwinds, including foreign currency impacts, global supply chain challenges, and regional softness continued for DENTSPLY in China and the United States. Management was not satisfied with the third quarter result.
Estimates Trend
The Zacks Consensus Estimate for 2023 revenues is pegged at $3.8 billion, suggesting a decline of 1.8% from 2022’s preliminary number.
For 2023, the consensus mark for adjusted earnings per share stands at $1.87, suggesting a decline of 4.6% from 2022.
Laboratory Corp. of America, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 7% compared with the industry’s 4.3%. LH’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average beat being 6.06%.
Laboratory Corp. of America has lost 7.2% compared with the industry’s 2% decline in the past year.
Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3.04%.
Cardinal Health has gained 48.2% against the industry’s 2% decline in the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average beat being 4.79%.
McKesson has gained 50.3% against the industry’s 2% decline in the past year.
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Here's Why You Should Retain DENTSPLY SIRONA (XRAY) Stock Now
DENTSPLY SIRONA (XRAY - Free Report) is well-poised for growth on a robust product portfolio and continued focus on research and development. However, forex remains a headwind.
Shares of this Zacks Rank #3 (Hold) company have lost 30.8% compared with the industry's decline of 2% in the past year. The S&P 500 Index has lost 12.5% in the same time frame.
The company, with a market capitalization of $7.91 billion, is a global leader in the design, development, manufacture and marketing of dental consumables, dental laboratory products, dental specialty products and consumable medical device products. It anticipates its earnings to improve 3.9% over the next five years.
Image Source: Zacks Investment Research
What's Favoring the Stock?
DENTSPLY's introduction of PrimeScan, a digital impression scanner, and Primemill, among its other major products, has been driving the company's top line over the past couple of years. It bolstered the consumable areas with Surefil one, Palodent 360 and the digital denture program. The company's Astra EV Implant has been gaining momentum as well.
The company launched Primeprint, a medical-grade, highly automated 3D printer, in 2022 to bolster dentists’ workflows and practice efficiency. Apart from being an easy-to-use device, this 3D printer enables dentists to delegate tasks related to 3D printing to their staff. Primeprint provides complete integration with the CEREC system and enables dentists to produce things like night guards, surgical guides and full-scale models in a quick and inexpensive manner.
In 2021, the company launched ProTaper Ultimate, which is the first major endodontic platform innovation introduced in its endo business in more than five years. As part of a new platform, this will include new files of biosymmetric sealer and a new disinfection device.
Apart from this, the company will also introduce multiple new motor systems in the upcoming months. It will launch CEREC 5.2, a significant upgrade in Primescan, as it further enhances speed and ease of use. This CEREC 5.2 upgrade supports the new dental scanning capability and differentiates Primescan in the marketplace.
During the third quarter, DENTSPLY witnessed double-digit growth in clear aligners, solid performance in Europe, and continued strong demand for Imaging equipment.
Apart from these proven products, the company has an excellent new product pipeline that will aid its performance in 2023 and beyond. DENTSPLY initiated a comprehensive review of the entire business to improve execution, build a winning portfolio and return to growth, during 2022. Moreover, the completion of internal investigation removes a major overhang for the company.
What's Weighing on It?
DENTSPLY recorded a non-cash charge for the impairment of goodwill and intangible assets of $1.1 billion net of tax during the third quarter. The charge reflected the impact of macroeconomic factors as a result of weakened global demand, higher cost of capital, unfavorable foreign currency impacts, and increased raw material, supply chain and service costs.
Macroeconomic headwinds, including foreign currency impacts, global supply chain challenges, and regional softness continued for DENTSPLY in China and the United States. Management was not satisfied with the third quarter result.
Estimates Trend
The Zacks Consensus Estimate for 2023 revenues is pegged at $3.8 billion, suggesting a decline of 1.8% from 2022’s preliminary number.
For 2023, the consensus mark for adjusted earnings per share stands at $1.87, suggesting a decline of 4.6% from 2022.
DENTSPLY SIRONA Inc. Price
DENTSPLY SIRONA Inc. price | DENTSPLY SIRONA Inc. Quote
Stocks to Consider
Some better-ranked stocks from the broader medical space are Laboratory Corp. of America (LH - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and McKesson (MCK - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Laboratory Corp. of America, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 7% compared with the industry’s 4.3%. LH’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average beat being 6.06%.
Laboratory Corp. of America has lost 7.2% compared with the industry’s 2% decline in the past year.
Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3.04%.
Cardinal Health has gained 48.2% against the industry’s 2% decline in the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average beat being 4.79%.
McKesson has gained 50.3% against the industry’s 2% decline in the past year.