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Reasons to Retain DENTSPLY SIRONA (XRAY) in Your Portfolio

Zacks Equity Research
·3 min read

DENTSPLY SIRONA XRAY is well poised for growth on a robust product portfolio and continued focus on research and development. However, forex remains a concern.

Shares of this Zacks Rank #3 (Hold) company have risen 11.6% year to date compared with the industry's 11.6% growth. The S&P 500 Index has gained 17.1% in the same time frame.

XRAY, with a market capitalization of $7.52 billion, is a global leader in the design, development, manufacturing and marketing of dental consumables, dental laboratory products, dental specialty products and consumable medical device products. It anticipates earnings to improve 8.9% over the next five years.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

What's Favoring the Stock?

DENTSPLY SIRONA's introduction of PrimeScan, a digital impression scanner, Byte and SureSmile, among its other major products, has been driving its top line over the past few quarters.

XRAY launched Primeprint — a medical-grade, highly automated 3D printer — in 2022 to enhance dentists’ workflow and practice efficiency. Apart from being an easy-to-use device, this 3D printer enables dentists to delegate tasks related to 3D printing to their staff.

Primeprint provides complete integration with the CEREC system and enables dentists to produce night guards, surgical guides, and full-scale models in a quick and inexpensive manner.

Apart from this, the company will also introduce multiple new motor systems in the upcoming months. It will launch CEREC 5.2, a significant upgrade in Primescan, to further enhance speed and ease of use. This upgrade will support the new dental scanning capability and highlight Primescan in the marketplace.

During the second quarter of 2023, DENTSPLY SIRONA witnessed a huge demand for clear aligners, solid performance in Europe and continued strong demand for Imaging equipment.

XRAY also has an excellent new product pipeline that will aid its performance in 2023 and beyond. The company initiated a comprehensive review of its entire business in 2022 to improve execution, build a winning portfolio and return to growth. The completion of internal investigation removed a major overhang for XRAY.

What's Weighing on the Stock?

Macroeconomic headwinds, including foreign currency impacts, global supply-chain challenges and regional softness continued in China and the United States.

Estimates Trend

The Zacks Consensus Estimate for 2023 revenues is pegged at $4 billion, indicating a 2% increase from the 2022 level.

The consensus mark for adjusted earnings per share is pinned at $1.97 for 2023, indicating a 5.7% year-over-year decline.

DENTSPLY SIRONA Inc. Price

DENTSPLY SIRONA Inc. Price
DENTSPLY SIRONA Inc. Price

DENTSPLY SIRONA Inc. price | DENTSPLY SIRONA Inc. Quote

Stocks to Consider

Some better-ranked stocks in the broader medical space are Align Technology ALGN, HealthEquity, Inc. HQY and McKesson Corporation MCK.

Align Technology, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 17.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ALGN’s earnings surpassed estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 1.76%. The company’s shares have risen 57.5% year to date compared with the industry’s 11.4% growth.

HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.1%.

The company’s shares have rallied 12% year to date against the industry’s 10.3% decline.

McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 8.1%.

The stock has rallied 12% year to date compared with the industry’s 11.4% growth.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Align Technology, Inc. (ALGN) : Free Stock Analysis Report

McKesson Corporation (MCK) : Free Stock Analysis Report

DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report

HealthEquity, Inc. (HQY) : Free Stock Analysis Report

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Zacks Investment Research

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