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Strength Seen in Henry Schein (HSIC): Can Its 5.4% Jump Turn into More Strength?

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Henry Schein (HSIC - Free Report) shares rallied 5.4% in the last trading session to close at $71.22. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1% loss over the past four weeks.

Henry Schein recently marked the opening of an 811K-square-foot Southwestern Distribution Center in Fort Worth, Texas, the largest single building in its global network. The strategic step reinforces its commitment to enhancing supply chain efficiency and customer service. Additionally, the company is set to release its second quarter 2024 financial results next month. In the last reported first quarter, Henry Schein demonstrated a solid gross margin expansion and a strong recovery from the 2023 cyber incident.

This health care products maker is expected to post quarterly earnings of $1.27 per share in its upcoming report, which represents a year-over-year change of -3.1%. Revenues are expected to be $3.28 billion, up 5.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Henry Schein, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on HSIC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Henry Schein is a member of the Zacks Medical - Dental Supplies industry. One other stock in the same industry, Labcorp (LH - Free Report) , finished the last trading session 0.3% lower at $215.78. LH has returned 4.8% over the past month.

Labcorp's consensus EPS estimate for the upcoming report has changed -0.4% over the past month to $3.78. Compared to the company's year-ago EPS, this represents a change of +10.5%. Labcorp currently boasts a Zacks Rank of #4 (Sell).


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