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Valued at a market cap of $8.3 billion, Henry Schein, Inc. (HSIC) is a Melville, New York-based company that provides health care products and services to dental and medical practitioners.
This healthcare company has underperformed the broader market over the past 52 weeks. Shares of HSIC have gained marginally over this time frame, while the broader S&P 500 Index ($SPX) has soared 23.3%. Moreover, on a YTD basis, the stock is down 3.1%, compared to SPX’s 7.4% rise.
Narrowing the focus, HSIC has also trailed the State Street Health Care Select Sector SPDR ETF (XLV), which surged 9.2% over the past 52 weeks. However, it has outpaced XLV’s 5% YTD drop.
On May 5, shares of HSIC gained 3.3% after delivering stronger-than-expected Q1 results. The company’s revenue increased 6.3% year-over-year to $3.4 billion, topping analyst estimates by 1.2%. Moreover, its adjusted EPS of $1.32 exceeded consensus expectations of $1.20. Management attributed the upbeat performance to continued market share gains and resilient dental procedure volumes, supported by merchandise price increases and sustained investments from dental service organizations (DSOs). Although the medical segment faced pressure from a milder flu season that reduced demand for point-of-care diagnostic products, the weakness was largely offset by solid momentum in Home Solutions and technology-focused offerings.
For the current fiscal year, ending in December, analysts expect HSIC’s EPS to grow 6.8% year over year to $5.31. The company’s earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 17 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on eight “Strong Buy,” eight "Hold," and one "Strong Sell” ratings.
The configuration is slightly more bullish than two months ago, with seven analysts suggesting a “Strong Buy” rating.
On May 7, Baird maintained an “Outperform” rating on HSIC but lowered its price target to $97, indicating a 32.5% potential upside from the current levels.
The mean price target of $87.50 suggests a 19.5% premium to its current price levels, while its Street-high price target of $100 implies a 36.6% potential upside.
