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Here's Why You Should Add NVST Stock to Your Portfolio Right Now

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Key Takeaways

  • Envista is expanding globally, with double-digit growth in Latin America, Indo-Pacific, and the Middle East.
  • NVST's acquisitions, including Carestream Dental's scanner unit and Osteogenics, strengthen its portfolio.
  • Envista ended Q2 2025 with $1.11B cash and no current debt, highlighting strong financial flexibility.

Envista Holdings Corp.’s (NVST - Free Report) global commercial expansion positions it for robust future growth due to deeper penetration across more markets. Additionally, it continuously assesses potential buys that either strategically complement its current portfolio or broaden it into new and lucrative economic sectors. Meanwhile, a strong solvency bodes well. Yet, currency fluctuations raise concerns for Envista’s operations.

In the past year, this Zacks Rank #2 (Buy) stock has gained 17.8%, outpacing the industry’s growth of 2.6%. The S&P 500 composite grew 19.4% in the same time frame.

The leading optical retailer has a market capitalization of $3.45 billion. The company’s earnings yield of 5.3% is well ahead of the industry’s 0.2%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 16.50%.

Tailwinds for NVST

Focus on International Market Expansion: Outside the United States, Envista has principal markets in Europe, Asia, the Middle East, and Latin America. Through its trusted brands, innovative product offerings, and comprehensive customer service, it has established strong global relationships with key constituencies, including DSOs, dental specialists, general dentists, and dental laboratories.

We believe that this increasing penetration across geographies positions Envista well for substantial future growth. With respect to emerging markets, Envista delivered double-digit growth across Latin America, Indo-Pacific, and the Middle East and Africa regions in the second quarter of 2025.

Strategic Acquisitions to Drive Growth: Envista's growth strategy focuses on future acquisitions, and it continuously assesses potential buys that either strategically complement its current portfolio or broaden it into new and lucrative economic sectors.

In 2022, the company acquired Carestream Dental's Intraoral Scanner business, now operating as DEXIS under the Envista Equipment and Consumables segment. DEXIS introduced several innovations last year, including the DEXIS digital ecosystem, DEXIS Ti2 Intraoral Sensor, and DEXIS Connect Pro. Envista also acquired Osteogenics Biomedical Inc., Allotech LLC and OBI Biologics, Inc. (together Osteogenics), the developer of innovative regenerative solutions for periodontists, oral & maxillofacial surgeons, and clinicians involved in implant dentistry throughout the world.

Favorable Solvency: At the end of the second quarter of 2025, the company had cash and cash equivalents of $1.11 billion, while current debt was nil. This underlying financial strength provides Envista with strong flexibility amid ongoing macroeconomic uncertainty.

Long-term debt totaled $1.45 billion compared with $1.30 billion at the end of the first quarter. The company’s net debt to adjusted EBITDA was approximately 1X, signaling stability and flexibility, particularly during periods of heightened macroeconomic uncertainty. Meanwhile, times interest earned jumped 28.5% from the first quarter to 4%.

 

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Headwinds for NVST

Foreign Exchange Affecting Sales: Significant portions of Envista's sales and costs are exposed to changes in foreign exchange rates. The company’s operations use multiple foreign currencies and changes in those currencies relative to the U.S. dollar will impact its sales, cost of sales and expenses, and consequently, net income. In the second quarter of 2025, Envista’s operating profit was partially offset by higher costs due to the impact of unfavorable foreign exchange rates.

NVST Stock Estimate Trend

The Zacks Consensus Estimate for 2025 earnings per share (EPS) has remained unchanged at $1.12 in the past 30 days.

The Zacks Consensus Estimate for 2025 revenues is pegged at $2.61 billion, suggesting a 4% increase from the year-ago reported number.

Other Top MedTech Stocks

Some other top-ranked stocks in the broader medical space are GE HealthCare Technologies (GEHC - Free Report) , Masimo (MASI - Free Report) and Phibro Animal Health (PAHC - Free Report) .

GE HealthCare has an earnings yield of 5.8% compared with the industry’s 0.2%. Shares of the company have surged 76.5% compared with the industry’s 3.4% growth. GEHC’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 12.5%.

GEHC carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Masimo, currently carrying a Zacks Rank #1, has an estimated long-term earnings growth rate of 12.5% compared with the industry’s 9.9%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 9.17%. MASI shares have rallied 18.9% against the industry’s 15.4% decline in the past year.

Phibro, currently carrying a Zacks Rank #1, has an estimated earnings growth rate of 17.2% for fiscal 2026 compared with the S&P 500 composite’s 10.9% growth. Shares of the company have rallied 101.1% compared with the industry’s 3% growth. PAHC’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%.

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