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Henry Schein (HSIC) Soars 7.9%: Is Further Upside Left in the Stock?

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Henry Schein (HSIC - Free Report) shares soared 7.9% in the last trading session to close at $79.87. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.3% gain over the past four weeks.

Henry Schein recorded a strong price increase driven by its encouraging first-quarter 2021 results, with adjusted earnings per share and revenues surpassing Zacks Consensus Estimate by 49.4% and 3.6%, respectively. The raised full year 2021 adjusted earnings guidance also augers well. The company’s recent confirmation of closing five acquisitions across its businesses during the first quarter raises optimism.

Price and Consensus

Price Consensus Chart for HSIC

This health care products maker is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of -11.7%. Revenues are expected to be $2.84 billion, up 16.7% 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 remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 >>>>

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