DENTSPLY SIRONA Inc. (XRAY Quick QuoteXRAY - Free Report) is one of the underperforming companies in the Med Tech space.

 

DENTSPLY’s shares have lost 15.2% compared with the industry’s decline of 0.3%.

 

Nine estimates moved south in the last 60 days versus no upward revision, indicating analyst pessimism. During the same period, the Zacks Consensus Estimate for earnings per share dropped 20% to 48 cents. The company has a Zacks Rank #4 (Sell), which indicates expectations of underperformance in the near term.

 

Therefore, it is time to dump the stock from your portfolio.

 

 

 

 

 

Declining Earnings: Last quarter, DENTSPLY reported adjusted earnings per share of 82 cents, down 22.4% year over year.

 

Margins Likely to Contract: DENTSPLY expects gross and operating margins to remain flat or decline slightly from 2017 levels as underlying margin rate improvement is expected to be offset by adverse foreign exchange and target inventory equipment reduction.

 

Foreign Exchange Headwinds: The company has significant international presence. Thus, the strengthening of the U.S. dollar, especially against the euro, as well as emerging market currencies negatively impact the company’s results. We believe that currency volatility will remain a headwind for 2018.

 

The company faces significant pricing pressure due to intensifying competition. DENTSPLY conducts its operations, both domestic and foreign, in highly competitive market conditions. The size and number of the company’s competitors vary by product line and from region to region.

 

 

A few better-ranked stocks in the broader medical sector are athenahealth, Inc. , Bio-Rad Laboratories, Inc. (BIO Quick QuoteBIO - Free Report) and Centene Corporation (CNC Quick QuoteCNC - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

 

athenahealth has an expected long-term growth rate of 17.7% and earnings per share growth rate of 21.5%.

 

Bio-Rad has an expected long-term growth rate of 20% and earnings per share growth rate of 20%.

 

Centene has an expected long-term growth rate of 14.4% and earnings per share growth rate of 14.4%.

 

 

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

 

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.