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Patterson Cos. (PDCO) Gains As Market Dips: What You Should Know

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Patterson Cos. (PDCO - Free Report) closed at $33.37 in the latest trading session, marking a +0.45% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 1.17%.

Coming into today, shares of the medical supplies maker had gained 1.4% in the past month. In that same time, the Medical sector gained 4.44%, while the S&P 500 gained 2.35%.

Wall Street will be looking for positivity from Patterson Cos. as it approaches its next earnings report date. In that report, analysts expect Patterson Cos. to post earnings of $0.40 per share. This would mark year-over-year growth of 25%. Our most recent consensus estimate is calling for quarterly revenue of $1.57 billion, up 3.23% from the year-ago period.

PDCO's full-year Zacks Consensus Estimates are calling for earnings of $2.50 per share and revenue of $6.72 billion. These results would represent year-over-year changes of +3.31% and +3.79%, respectively.

Investors might also notice recent changes to analyst estimates for Patterson Cos.These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Patterson Cos. is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Patterson Cos. is currently trading at a Forward P/E ratio of 13.3. Its industry sports an average Forward P/E of 23.01, so we one might conclude that Patterson Cos. is trading at a discount comparatively.

We can also see that PDCO currently has a PEG ratio of 1.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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