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Patterson and ADPI Extend Partnership for Dental Platform
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St. Paul, MN-based Patterson Companies Inc. (PDCO - Free Report) , a leading distributor and seller of dental and animal health products, announced that it has extended its partnership with American Dental Partners or ADPI. ADPI is a premier U.S. provider of dental facilities, support staff and business services for multidisciplinary dental group practices.
Over the past six months, Patterson has traded below the Zacks categorized Medical/Dental-Supplies sub-industry. The stock currently represents a negative return of 10.55%, much wider than the sub-industry’s decline of 1%. Year to date, the company lost 9.64%, while the S&P 500 rose 12.88%.
Nevertheless, Patterson has compelling fundamentals in terms of revenues, multiplying at a CAGR of 27.3% over the last three years. Additionally, a long-term earnings growth rate of 7.48% instills investor confidence. Average volume of shares traded over the last three months was remarkable at approximately 1,992,129. Currently, the stock has a market cap of $4 billion. Patterson has been a partner of ADPI for the past 20 years. Note that partnerships have been a key growth catalyst for Patterson in the recent years. Strategic collaborations with the likes of A-dec, DentalEZ, Planmeca, Proma and others will drive the company’s market share in the dental and veterinary division in the long run. We believe that the latest development will help the Patterson Dental platform to strengthen its hold and gain a leading position in the global markets.
Our Take
In the last reported quarter (first-quarter fiscal 2017), the Dental platform raked in sales of approximately $555 million (up 2.1% at constant currency), down 3.5% on a year-over-year basis, representing 43% of total sales. In our view, Patterson focuses on boosting its core dental business through strategic partnerships like ones mentioned above to enhance its performance in the upcoming quarters.
Patterson is set to gain significant market traction in the near future given the global market sentiments. The global dental consumable market is forecasted to reach $35.35 billion by 2021, growing at a CAGR of 6.8%, as per a research report by ‘Markets And Markets’.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 51.2%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 19.3% in the last three months.
IDEXX Laboratories has an expected earnings growth of almost 15%. The company posted a promising year-to-date return of almost 64.4%.
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Patterson and ADPI Extend Partnership for Dental Platform
St. Paul, MN-based Patterson Companies Inc. (PDCO - Free Report) , a leading distributor and seller of dental and animal health products, announced that it has extended its partnership with American Dental Partners or ADPI. ADPI is a premier U.S. provider of dental facilities, support staff and business services for multidisciplinary dental group practices.
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Over the past six months, Patterson has traded below the Zacks categorized Medical/Dental-Supplies sub-industry. The stock currently represents a negative return of 10.55%, much wider than the sub-industry’s decline of 1%. Year to date, the company lost 9.64%, while the S&P 500 rose 12.88%.
Nevertheless, Patterson has compelling fundamentals in terms of revenues, multiplying at a CAGR of 27.3% over the last three years. Additionally, a long-term earnings growth rate of 7.48% instills investor confidence. Average volume of shares traded over the last three months was remarkable at approximately 1,992,129. Currently, the stock has a market cap of $4 billion.
Patterson has been a partner of ADPI for the past 20 years. Note that partnerships have been a key growth catalyst for Patterson in the recent years. Strategic collaborations with the likes of A-dec, DentalEZ, Planmeca, Proma and others will drive the company’s market share in the dental and veterinary division in the long run. We believe that the latest development will help the Patterson Dental platform to strengthen its hold and gain a leading position in the global markets.
Our Take
In the last reported quarter (first-quarter fiscal 2017), the Dental platform raked in sales of approximately $555 million (up 2.1% at constant currency), down 3.5% on a year-over-year basis, representing 43% of total sales. In our view, Patterson focuses on boosting its core dental business through strategic partnerships like ones mentioned above to enhance its performance in the upcoming quarters.
Patterson is set to gain significant market traction in the near future given the global market sentiments. The global dental consumable market is forecasted to reach $35.35 billion by 2021, growing at a CAGR of 6.8%, as per a research report by ‘Markets And Markets’.
Zacks Rank & Key Picks
Currently, Patterson has a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and IDEXX Laboratories, Inc. (IDXX - Free Report) . Addus HomeCare and IDEXX Laboratories sport a Zacks Rank #1 (Strong Buy). Meanwhile, LHC Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 51.2%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 19.3% in the last three months.
IDEXX Laboratories has an expected earnings growth of almost 15%. The company posted a promising year-to-date return of almost 64.4%.
Zacks’ Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>