Henry Schein (HSIC) closed at $78.81 in the latest trading session, marking a -0.78% move from the prior day. This change was narrower than the S&P 500’s daily loss of 0.79%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 2.71%.
Heading into today, shares of the health care product maker had gained 5.54% over the past month, outpacing the Medical sector’s loss of 0.35% and the S&P 500’s gain of 4.16% in that time.
Wall Street will be looking for positivity from Henry Schein as it approaches its next earnings report date. In that report, analysts expect Henry Schein to post earnings of $1.25 per share. This would mark year-over-year growth of 7.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.11 billion, up 2.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.26 per share and revenue of $12.83 billion. These totals would mark changes of +9.36% and +1.45%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Henry Schein. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Henry Schein currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Henry Schein has a Forward P/E ratio of 15.11 right now. This represents a discount compared to its industry’s average Forward P/E of 21.35.
Also, we should mention that HSIC has a PEG ratio of 2.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. HSIC’s industry had an average PEG ratio of 2.12 as of yesterday’s close.
The Medical – Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download the 7 Best Stocks for the Next 30 Days. Click to get this free report
Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research