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Here's Why You Should Retain DENTSPLY SIRONA (XRAY) Stock 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 headwind.
Shares of this Zacks Rank #3 (Hold) company have gained 25.1% compared with the industry's 10.6% growth in the past year. The S&P 500 Index has gained 6.6% in the same time frame.
The company, with a market capitalization of $8.02 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?
DENTSPLY's introduction of PrimeScan, a digital impression scanner, and Primemill, among its other major products, have been driving the company's top line over the past couple of years. The company bolstered the consumable areas with Surefil one, Palodent 360 and the digital denture program. The company's Astra EV Implant has been gaining momentum as well.
XRAY launched Primeprint — a medical-grade, highly automated 3D printer — in 2022 to bolster dentists’ workflow and practice efficiency. Apart from being an easy-to-use device, this 3D printer enables dentists to delegate tasks related to 3D printing to their staff. Primeprint provides complete integration with the CEREC system and enables dentists to produce things like night guards, surgical guides, and full-scale models in a quick and inexpensive manner.
In 2021, DENTSPLY launched ProTaper Ultimate, which is the first major endodontic platform innovation introduced in its endo business in more than five years. As part of a new platform, this will include new files of biosymmetric sealer and a new disinfection device.
Apart from this, the company will also introduce multiple new motor systems in the upcoming months. It will launch CEREC 5.2, a significant upgrade in Primescan, to further enhance speed and ease of use. This upgrade will support the new dental scanning capability and highlight Primescan in the marketplace.
During the fourth quarter, DENTSPLY witnessed high demand for clear aligners, solid performance in Europe and continued strong demand for Imaging equipment.
Apart from these proven products, the company also has an excellent new product pipeline that will aid its performance in 2023 and beyond. The company initiated a comprehensive review of the entire business to improve execution, build a winning portfolio and return to growth, during 2022. Moreover, the completion of internal investigation removes a major overhang for the company.
What's Weighing on the Stock?
DENTSPLY recorded a non-cash charge for the impairment of goodwill and intangible assets of $1.1 billion net of tax during the third quarter. The charge reflected the impact of macroeconomic factors as a result of weakened global demand, higher cost of capital, unfavorable foreign currency impacts, and increased raw material, supply chain and service costs.
Macroeconomic headwinds, including foreign currency impacts, global supply chain challenges, and regional softness continued in China and the United States. Management was not satisfied with the fourth-quarter results.
Estimates Trend
The Zacks Consensus Estimate for 2023 revenues is pegged at $3.91 billion, indicating a 0.3% decline from 2022.
For 2023, the consensus mark for adjusted earnings per share is $1.87, indicating a 10.5% decline from 2022.
Some better-ranked stocks in the broader medical space areBecton, Dickinson and Company (BDX - Free Report) , Henry Schein (HSIC - Free Report) and The Cooper Companies (COO - Free Report) .
Becton, Dickinson and Company, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth of 7.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.47%.
In the past six months, BDX’s shares have gained 4.4% compared with the industry’s 10.5% growth.
Henry Schein, carrying a Zacks Rank #2 at present, has an estimated long-term growth of 18.3%. Its earnings surpassed estimates in three of the trailing four quarters and met the same once, the average beat being 2.97%.
In the past six months, the company’s shares have gained 17.3% compared with the industry’s 10.5% growth.
The Cooper Companies, carrying a Zacks Rank #2 at present, has an estimated long-term growth of 11%. COO’s earnings missed estimates in each of the trailing four quarters, the average negative surprise being 1.82%.
In the past six months, the company’s shares have gained 31.9% compared with the industry’s 10.5% growth.
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Here's Why You Should Retain DENTSPLY SIRONA (XRAY) Stock 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 headwind.
Shares of this Zacks Rank #3 (Hold) company have gained 25.1% compared with the industry's 10.6% growth in the past year. The S&P 500 Index has gained 6.6% in the same time frame.
The company, with a market capitalization of $8.02 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?
DENTSPLY's introduction of PrimeScan, a digital impression scanner, and Primemill, among its other major products, have been driving the company's top line over the past couple of years. The company bolstered the consumable areas with Surefil one, Palodent 360 and the digital denture program. The company's Astra EV Implant has been gaining momentum as well.
XRAY launched Primeprint — a medical-grade, highly automated 3D printer — in 2022 to bolster dentists’ workflow and practice efficiency. Apart from being an easy-to-use device, this 3D printer enables dentists to delegate tasks related to 3D printing to their staff. Primeprint provides complete integration with the CEREC system and enables dentists to produce things like night guards, surgical guides, and full-scale models in a quick and inexpensive manner.
In 2021, DENTSPLY launched ProTaper Ultimate, which is the first major endodontic platform innovation introduced in its endo business in more than five years. As part of a new platform, this will include new files of biosymmetric sealer and a new disinfection device.
Apart from this, the company will also introduce multiple new motor systems in the upcoming months. It will launch CEREC 5.2, a significant upgrade in Primescan, to further enhance speed and ease of use. This upgrade will support the new dental scanning capability and highlight Primescan in the marketplace.
During the fourth quarter, DENTSPLY witnessed high demand for clear aligners, solid performance in Europe and continued strong demand for Imaging equipment.
Apart from these proven products, the company also has an excellent new product pipeline that will aid its performance in 2023 and beyond. The company initiated a comprehensive review of the entire business to improve execution, build a winning portfolio and return to growth, during 2022. Moreover, the completion of internal investigation removes a major overhang for the company.
What's Weighing on the Stock?
DENTSPLY recorded a non-cash charge for the impairment of goodwill and intangible assets of $1.1 billion net of tax during the third quarter. The charge reflected the impact of macroeconomic factors as a result of weakened global demand, higher cost of capital, unfavorable foreign currency impacts, and increased raw material, supply chain and service costs.
Macroeconomic headwinds, including foreign currency impacts, global supply chain challenges, and regional softness continued in China and the United States. Management was not satisfied with the fourth-quarter results.
Estimates Trend
The Zacks Consensus Estimate for 2023 revenues is pegged at $3.91 billion, indicating a 0.3% decline from 2022.
For 2023, the consensus mark for adjusted earnings per share is $1.87, indicating a 10.5% decline from 2022.
DENTSPLY SIRONA Inc. Price
DENTSPLY SIRONA Inc. price | DENTSPLY SIRONA Inc. Quote
Stocks to Consider
Some better-ranked stocks in the broader medical space areBecton, Dickinson and Company (BDX - Free Report) , Henry Schein (HSIC - Free Report) and The Cooper Companies (COO - Free Report) .
Becton, Dickinson and Company, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth of 7.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.47%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past six months, BDX’s shares have gained 4.4% compared with the industry’s 10.5% growth.
Henry Schein, carrying a Zacks Rank #2 at present, has an estimated long-term growth of 18.3%. Its earnings surpassed estimates in three of the trailing four quarters and met the same once, the average beat being 2.97%.
In the past six months, the company’s shares have gained 17.3% compared with the industry’s 10.5% growth.
The Cooper Companies, carrying a Zacks Rank #2 at present, has an estimated long-term growth of 11%. COO’s earnings missed estimates in each of the trailing four quarters, the average negative surprise being 1.82%.
In the past six months, the company’s shares have gained 31.9% compared with the industry’s 10.5% growth.