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Reasons to Retain DENTSPLY SIRONA (XRAY) in Your Portfolio 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 concern.
Shares of this Zacks Rank #3 (Hold) company have lost 28.2% year to date against the industry's 2.7% growth. The S&P 500 Index has gained 14.9% in the same time frame.
XRAY, with a market capitalization of $5.28 billion, is a global leader in the design, development, manufacturing and marketing of dental consumables, dental laboratory products, dental specialty products and consumable medical device products. It anticipates earnings to improve 8.9% over the next five years.
Image Source: Zacks Investment Research
What's Favoring the Stock?
Continued demand for Byte and SureSmile products is a significant factor, propelling the sales of DENTSPLY SIRONA's Orthodontic and Implant Solutions. Additionally, consistent patient visits and strategic pricing have contributed to the expansion across various regions and product lines, bolstering the Essential Dental Solutions division's revenues. The inclusion of Wellspect Healthcare's offerings has further augmented sales. The Connected Technology Solutions segment witnessed a robust increase in its first-quarter sales, thanks to the surging demand for aligners and CAD/CAM devices.
In addition to the encouraging demand for its products, XRAY is reaping the rewards of its transformative efforts launched at the beginning of 2023. These efforts encompass a reduction in workforce, a streamlined management hierarchy, consolidation of functions and enhancement of infrastructure efficiency. Such strategic measures have led to considerable cost reductions, thereby enhancing the company's potential for achieving double-digit profit growth in 2024.
Meanwhile, the company continues to add new products to its portfolio, thereby improving growth prospects. Earlier this year, XRAY launched Lucitone for Primeprint, which will likely help it accelerate the adoption of 3D printing in dental practices. XRAY, recently, expanded its collaboration with private dental office furniture and equipment manufacturer, A-dec. It did so to introduce a new integrated product offering that will bring together Primescan Connect and certain A-dec delivery systems.
What's Weighing on the Stock?
DENTSPLY SIRONA is facing macroeconomic headwinds in many regions, especially in ex-U.S. markets. Sales at Connected Technology Solutions were hurt during the fourth quarter due to softness in imaging, a trend that is likely to plague the segment this year as well. Although there is an improved business sentiment in the United States, the same remains gloomy in German and Australian markets. Patient demand continued to remain low in China during the fourth quarter.
The company is facing a challenging macro-environment, particularly in Germany and the United States. Soft demand in Europe may act as a headwind in 2024. The volume-based pricing policy in China can lead to lower prices in the country.
Estimate Trend
The Zacks Consensus Estimate for 2024 revenues is pegged at $3.93 billion, indicating a 0.7% decrease from the 2023 level.
The consensus mark for adjusted earnings per share is pinned at $2.03 for 2024, indicating a 10.9% year-over-year improvement.
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 13.6%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 29.35%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have risen 34.9% compared with the industry’s 8.6% growth year to date.
Haemonetics, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 12% in 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 13.24%.
HAE’s shares have risen 0.2% year to date compared with the industry’s 2.8% growth.
Hologic, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.94%.
Hologic’s shares have risen 2.3% year to date compared with the industry’s 5.4% growth.
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Reasons to Retain DENTSPLY SIRONA (XRAY) in Your Portfolio 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 concern.
Shares of this Zacks Rank #3 (Hold) company have lost 28.2% year to date against the industry's 2.7% growth. The S&P 500 Index has gained 14.9% in the same time frame.
XRAY, with a market capitalization of $5.28 billion, is a global leader in the design, development, manufacturing and marketing of dental consumables, dental laboratory products, dental specialty products and consumable medical device products. It anticipates earnings to improve 8.9% over the next five years.
Image Source: Zacks Investment Research
What's Favoring the Stock?
Continued demand for Byte and SureSmile products is a significant factor, propelling the sales of DENTSPLY SIRONA's Orthodontic and Implant Solutions. Additionally, consistent patient visits and strategic pricing have contributed to the expansion across various regions and product lines, bolstering the Essential Dental Solutions division's revenues. The inclusion of Wellspect Healthcare's offerings has further augmented sales. The Connected Technology Solutions segment witnessed a robust increase in its first-quarter sales, thanks to the surging demand for aligners and CAD/CAM devices.
In addition to the encouraging demand for its products, XRAY is reaping the rewards of its transformative efforts launched at the beginning of 2023. These efforts encompass a reduction in workforce, a streamlined management hierarchy, consolidation of functions and enhancement of infrastructure efficiency. Such strategic measures have led to considerable cost reductions, thereby enhancing the company's potential for achieving double-digit profit growth in 2024.
Meanwhile, the company continues to add new products to its portfolio, thereby improving growth prospects. Earlier this year, XRAY launched Lucitone for Primeprint, which will likely help it accelerate the adoption of 3D printing in dental practices. XRAY, recently, expanded its collaboration with private dental office furniture and equipment manufacturer, A-dec. It did so to introduce a new integrated product offering that will bring together Primescan Connect and certain A-dec delivery systems.
What's Weighing on the Stock?
DENTSPLY SIRONA is facing macroeconomic headwinds in many regions, especially in ex-U.S. markets. Sales at Connected Technology Solutions were hurt during the fourth quarter due to softness in imaging, a trend that is likely to plague the segment this year as well. Although there is an improved business sentiment in the United States, the same remains gloomy in German and Australian markets. Patient demand continued to remain low in China during the fourth quarter.
The company is facing a challenging macro-environment, particularly in Germany and the United States. Soft demand in Europe may act as a headwind in 2024. The volume-based pricing policy in China can lead to lower prices in the country.
Estimate Trend
The Zacks Consensus Estimate for 2024 revenues is pegged at $3.93 billion, indicating a 0.7% decrease from the 2023 level.
The consensus mark for adjusted earnings per share is pinned at $2.03 for 2024, indicating a 10.9% year-over-year improvement.
DENTSPLY SIRONA Inc. Price
DENTSPLY SIRONA Inc. price | DENTSPLY SIRONA Inc. Quote
Stocks to Consider
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Haemonetics (HAE - Free Report) and Hologic (HOLX - Free Report) .
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 13.6%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 29.35%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have risen 34.9% compared with the industry’s 8.6% growth year to date.
Haemonetics, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 12% in 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 13.24%.
HAE’s shares have risen 0.2% year to date compared with the industry’s 2.8% growth.
Hologic, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.94%.
Hologic’s shares have risen 2.3% year to date compared with the industry’s 5.4% growth.