Grab 3 Dental Stocks More Than Doubling Industry Gains for 2021
With the United States recording at least 213,700 new COVID-19 cases and 2,400 deaths each day (per a CNBC report), it is quite obvious that the crisis is far from being over. As the markets still remain volatile, market watchers are becoming increasingly jittery regarding progress of the stimulus package and the possibility of new lockdown measures in order to curb the spread.
However, on a brighter note, the FDA granted emergency use authorization (EUA) to the Pfizer and BioNTech’s coronavirus vaccines. In fact, deliveries of the vaccine commenced on Monday, thereby reflecting a significant step toward combating the pandemic.
The MedTech industry showed significant resilience in the face of the pandemic, and with the commencement of vaccine distribution, this space is likely to hold its ground and sustain the momentum into 2021. However, despite being part of this industry, the dental space bore the brunt of the pandemic in the initial months of this year. Nevertheless, things started to look up with easing of restrictions and the space has exhibited slow but substantial recovery that reinstated investor confidence.
Let us delve deeper and see how investors can capitalize on this space backed by certain trends that can boost the industry prospects in 2021.
Dental Space Poised to Grow in 2021: Key Catalysts
It is worth mentioning that as per the analysts at Baird Equity Research, there has been an encouraging increase in patient volumes despite the rise in case counts in some states of the country. Although the pandemic continues to rage, companies involved in this space have been exhibiting gradual recovery from the month of July and we expect them to ride this favorable trend well into 2021.
The risk of contracting the virus has led to lower number of patient appointments available on a daily basis but clinicians have taken actions to counteract this impact. While some clinicians have resorted to teledentistry; others, especially dental support organization customers, have been focusing on maximizing patient procedures per visit.
Further, amid the ongoing pandemic, dental consumables and lower-cost equipment have been in demand among dentists, who are likely to be wary of making large investments in high-cost equipment.
Given the recovery path, most of the companies in this space are well positioned to deliver improved performance heading into 2021 on the back of new product launches and remote consultation technologies.
3 Lucrative Dental Stocks to Enrich Your Portfolio
Going by the aforementioned discussion, investors can bet on the dental space, which is poised for growth in 2021.
Align Technology, Inc. ALGN was able to hold its ground amid the public health crisis backed by its Invisalign system. In fact, the company successfully trained a significantly higher number of doctors through virtual courses, summits and forums amid the pandemic. The company trained approximately 6,500 new doctors in the reported quarter, which includes 3,200 international doctors. The company also exhibited recovery in its orthodontic channel with higher Invisalign comprehensive treatments in the teens and pre-teens segment across most regions. Apart from expanding Invisalign portfolio, the company displayed a substantial rebound in sales for the iTero imaging systems during third-quarter 2020 owing to reopening of dental practices. For 2021, the Zacks Consensus Estimate for revenues is pegged at $3.20 billion, suggesting an improvement of 32.4% from the previous year. On the back of solid improvement, we expect the company to continue on its recovery path heading into 2021. The stock carries a Zacks Rank of 2 (Buy).
Shares of this company have soared 84.8% on a year-to-date basis compared with the industry’s growth of 13.3%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Patterson Companies, Inc. PDCO has dispalyed growth amid the pandemic on the back of its broad product portfolio. The company offers a wide range of consumable supplies, equipment and software, and value-added services to customers, which safeguards it from any meaningful sales shortfall during an economic downturn. Apart from this, the company showed a sharp recovery in its Dental segment in the fiscal second-quarter 2021 and is anticipated to continue this trend in the near term. Additionally, prudent cost-saving approach and solid sales execution have been favoring for the Zacks Rank #2 stock. For fiscal 2021, the Zacks Consensus Estimate for revenues is pegged at $5.95 billion, suggesting an improvement of 3.7% from the previous year.
Shares of this company have surged 57.9% on a year-to-date basis compared with the industry’s growth of 13.3%.
West Pharmaceutical Services, Inc. WST continued to benefit from incremental sales associated with the pandemic that comprise components utilized with treatments and supporting therapies, and potential vaccines currently in clinical trials. Moreover, we anticipate the company to continue on its solid momentum on the back of High-Value Products (HVP) and Biologics. Adding to this, West Pharmaceutical raised both its full-year 2020 sales and EPS guidance, thereby boosting investors’ confidence. For 2021, the Zacks Consensus Estimate for revenues is pegged at $2.37 billion, reflecting an improvement of 12.3% from the previous year.
Shares of this Zacks Rank #2 company have surged 77.7% on a year-to-date basis compared with the industry’s growth of 13.3%.
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