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Here's Why You Should Invest in DENTSPLY SIRONA (XRAY) Now

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DENTSPLY SIRONA Inc. (XRAY - Free Report) has been benefitting from product launches and sustained focus on research and development (R&D) initiatives.

The Zacks Rank #2 (Buy) stock has rallied 31.7% compared with the industry’s 0.2% rise in a year’s time. The current level also compares favorably with the S&P 500 index’s 6.8% rise.

The company has an impressive earnings surprise history, having beaten estimates in the last three quarters, with a positive average earnings surprise of 5.6%.

What’s Favoring the Stock?

Product Launches

In recent times, DENTSPLY has launched products which are expected to significantly expand the company’s offerings.

Notably, recent launches include digital impression scanner PrimeScan, an important innovation in the CAD/CAM area, which is expected to help the company drive penetration of chairside dentistry. Another launch has been of Surefil One, which is a breakthrough in the restorative dentistry area. Per management, the product will be available for shipment in late 2019. Additionally, DENTSPLY launched a new generation of endodontic files TruNatomy. Another critical piece of the company’s sustainable foundation for growth is the differentiated clinical education program, which has been rolled out in the United States in the first quarter.

R&D Edge

DENTSPLY’s overall growth strategy rests on product innovation.

The company pursues several R&D initiatives to support technological development. In fact, DENTSPLY is creating a comprehensive R&D portfolio program which is expected to be completed by 2019. This apart, new products like WaveOne GOLD, X-Smart iQ, VDW and CONNECT Drive are expected to drive the company’s penetration in Europe. Growing preventive and restorative product portfolio is also expected to drive market expansion in the continent.

 

Which Way Are Estimates Headed?

For the second quarter, the Zacks Consensus Estimate for DENTSPLY’s adjusted earnings is pegged at 62 cents, suggesting a year-over-year rise of 3.3%. The same for revenues stands at $1.03 billion, calling for a year-over-year decline of 0.7%.

For 2019, the Zacks Consensus Estimate for revenues is pinned at $4.01 billion, indicating growth of 0.6%. The same for earnings stands at $2.35, suggesting a rise of 16.9% from 2018.

Other Key Picks

A few other top-ranked stocks in the broader medical space are Veeva Systems (VEEV - Free Report) , Penumbra (PEN - Free Report) and CONMED Corporation (CNMD - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Veeva’s long-term earnings growth rate is expected to be 15.3%.

Penumbra’s long-term earnings growth rate is projected at 21.5%.

CONMED’s long-term earnings growth rate is estimated at 13.3%.

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