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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 26.3% year to date against the industry's 0.6% growth. The S&P 500 Index has gained 16.9% in the same time frame.
XRAY, with a market capitalization of $5.41 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?
The sustained demand for Byte and SureSmile products has significantly driven the sales of DENTSPLY SIRONA's Orthodontic and Implant Solutions. Additionally, consistent patient visits and strategic pricing have contributed to the growth across various regions and product lines, enhancing the revenues of the Essential Dental Solutions division. The integration of Wellspect Healthcare's offerings has also boosted sales. The Connected Technology Solutions segment experienced a robust increase in first-quarter sales, fueled by the rising 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, XRAY continues to expand its product portfolio, thereby enhancing its growth prospects. Earlier this year, the company launched Lucitone for Primeprint, which is expected to accelerate the adoption of 3D printing in dental practices. Recently, XRAY expanded its collaboration with A-dec, a private dental office furniture and equipment manufacturer. This partnership is aimed at introducing a new integrated product offering that combines Primescan Connect with select 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 1% decrease from the 2023 level.
The consensus mark for adjusted earnings per share is pinned at $2.02 for 2024, indicating a 10.4% year-over-year improvement.
Some better-ranked stocks in the broader medical space are Becton, Dickinson and Company (BDX - Free Report) , Boston Scientific (BSX - Free Report) and Hologic (HOLX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.
Becton, Dickinson and Company has a long-term growth rate of 8.8%. Its earnings surpassed estimates in three of the trailing four quarters and met the same in one, delivering an average surprise of 5.41%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Becton, Dickinson and Company’s shares have lost 2.7% against the industry’s 0.5% growth year to date.
Boston Scientific has an earnings growth rate of 12.5% for 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.49%.
BSX’s shares have risen 34.5% year to date compared with the industry’s 4.3% growth.
Hologic has a 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 9.6% year to date compared with the industry’s 6.1% 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 26.3% year to date against the industry's 0.6% growth. The S&P 500 Index has gained 16.9% in the same time frame.
XRAY, with a market capitalization of $5.41 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?
The sustained demand for Byte and SureSmile products has significantly driven the sales of DENTSPLY SIRONA's Orthodontic and Implant Solutions. Additionally, consistent patient visits and strategic pricing have contributed to the growth across various regions and product lines, enhancing the revenues of the Essential Dental Solutions division. The integration of Wellspect Healthcare's offerings has also boosted sales. The Connected Technology Solutions segment experienced a robust increase in first-quarter sales, fueled by the rising 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, XRAY continues to expand its product portfolio, thereby enhancing its growth prospects. Earlier this year, the company launched Lucitone for Primeprint, which is expected to accelerate the adoption of 3D printing in dental practices. Recently, XRAY expanded its collaboration with A-dec, a private dental office furniture and equipment manufacturer. This partnership is aimed at introducing a new integrated product offering that combines Primescan Connect with select 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 1% decrease from the 2023 level.
The consensus mark for adjusted earnings per share is pinned at $2.02 for 2024, indicating a 10.4% 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 Becton, Dickinson and Company (BDX - Free Report) , Boston Scientific (BSX - Free Report) and Hologic (HOLX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.
Becton, Dickinson and Company has a long-term growth rate of 8.8%. Its earnings surpassed estimates in three of the trailing four quarters and met the same in one, delivering an average surprise of 5.41%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Becton, Dickinson and Company’s shares have lost 2.7% against the industry’s 0.5% growth year to date.
Boston Scientific has an earnings growth rate of 12.5% for 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.49%.
BSX’s shares have risen 34.5% year to date compared with the industry’s 4.3% growth.
Hologic has a 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 9.6% year to date compared with the industry’s 6.1% growth.