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Why You Should Add DENTSPLY SIRONA (XRAY) to Your Portfolio
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DENTSPLY SIRONA, Inc. (XRAY - Free Report) is gaining on product launches. A solid restructuring plan has also been contributing to growth.
The company, with a market capitalization of $13.68 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. The company’s earnings are expected to improve 7.3% over the next five years. However, this Zacks Rank #2 (Buy) company has a trailing four-quarter negative earnings surprise of 79.9%, on average.
In the past three months, the stock has gained 15.7% compared with the industry’s 5.1% growth.
Let’s delve deeper into the factors working in favor of the company.
CAD/CAM Unit in Focus: DENTSPLY’s CAD/CAM is a dental imaging platform and a major foundation in global dental markets. In January 2021, the company acquired Byte,a fast-growing clear aligner company in an all-cash deal for $1.04 billion. This buyout is likely to provide a boost to DENTSPLY’s Technologies & Equipment segment. In the same month, the company also acquired Datum Dental, which will boost the former's digital dentistry portfolio with the addition of the clinically superior proprietary technology, GLYMATRIX, and its strong OSSIX biomaterial.
Product Launches: In recent times, the company has launched few major products, including Primescan and Primemill. It also provided a boost to the consumable areas with Surefil one, Palodent 360 and the digital denture program. Moreover, the company’s Astra EV Implant has been witnessing good traction. The company continued gaining from the launch of Axeos, Primemill and SureFil one, as these received favorable customer feedback through the fourth quarter. Apart from these proven products, the company has an excellent new product pipeline that will positively impact 2021 and beyond.
Restructuring Plan: DENTSPLY announced a comprehensive plan to accelerate revenue growth, expand margins and simplify its business.The company remains on track to achieve its long-term cost-saving goal of $250 million. It delivered another $70 million of savings in fiscal 2020, which has brought the total cost savings to $160 million since the announcement of its restructuring in 2018. Consistent with this plan, management expects the restructuring to cost a total of $375 million. To date, the company has spent around $310 million, $120 million of which is non-cash.
Estimates Trend
For 2021, the Zacks Consensus Estimate for revenues is pegged at $4.12 billion, indicating a rise of 23.3% from the prior-year period. The same for earnings stands at $2.72 per share, suggesting growth of 51.9% from the year-ago reported figure.
Align Technology has a projected long-term earnings growth rate of 19%.
Abbott has a projected long-term earnings growth rate of 14.1%.
Hologic has an estimated long-term earnings growth rate of 15.4%.
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Why You Should Add DENTSPLY SIRONA (XRAY) to Your Portfolio
DENTSPLY SIRONA, Inc. (XRAY - Free Report) is gaining on product launches. A solid restructuring plan has also been contributing to growth.
The company, with a market capitalization of $13.68 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. The company’s earnings are expected to improve 7.3% over the next five years. However, this Zacks Rank #2 (Buy) company has a trailing four-quarter negative earnings surprise of 79.9%, on average.
In the past three months, the stock has gained 15.7% compared with the industry’s 5.1% growth.
Let’s delve deeper into the factors working in favor of the company.
CAD/CAM Unit in Focus: DENTSPLY’s CAD/CAM is a dental imaging platform and a major foundation in global dental markets. In January 2021, the company acquired Byte,a fast-growing clear aligner company in an all-cash deal for $1.04 billion. This buyout is likely to provide a boost to DENTSPLY’s Technologies & Equipment segment. In the same month, the company also acquired Datum Dental, which will boost the former's digital dentistry portfolio with the addition of the clinically superior proprietary technology, GLYMATRIX, and its strong OSSIX biomaterial.
Product Launches: In recent times, the company has launched few major products, including Primescan and Primemill. It also provided a boost to the consumable areas with Surefil one, Palodent 360 and the digital denture program. Moreover, the company’s Astra EV Implant has been witnessing good traction. The company continued gaining from the launch of Axeos, Primemill and SureFil one, as these received favorable customer feedback through the fourth quarter. Apart from these proven products, the company has an excellent new product pipeline that will positively impact 2021 and beyond.
Restructuring Plan: DENTSPLY announced a comprehensive plan to accelerate revenue growth, expand margins and simplify its business.The company remains on track to achieve its long-term cost-saving goal of $250 million. It delivered another $70 million of savings in fiscal 2020, which has brought the total cost savings to $160 million since the announcement of its restructuring in 2018. Consistent with this plan, management expects the restructuring to cost a total of $375 million. To date, the company has spent around $310 million, $120 million of which is non-cash.
Estimates Trend
For 2021, the Zacks Consensus Estimate for revenues is pegged at $4.12 billion, indicating a rise of 23.3% from the prior-year period. The same for earnings stands at $2.72 per share, suggesting growth of 51.9% from the year-ago reported figure.
Other Stocks to Consider
Some other top-ranked stocks from the broader medical space are Align Technology (ALGN - Free Report) , Abbott Laboratories (ABT - Free Report) and Hologic (HOLX - Free Report) . While Align Technology currently sports a Zacks Rank #1 (Strong Buy), the other two presently carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has a projected long-term earnings growth rate of 19%.
Abbott has a projected long-term earnings growth rate of 14.1%.
Hologic has an estimated long-term earnings growth rate of 15.4%.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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