/Henry%20Schein%20Inc_%20logo%20on%20phone-by%20Piotr%20Swat%20via%20Shuttestock.jpg)
Valued at a market cap of $9.1 billion, Henry Schein, Inc. (HSIC) is a leading distributor of healthcare products and services. The New York-based company serves dental, medical, and animal health practitioners, laboratories, ambulatory surgery centers, government, institutional healthcare clinics, and other alternate-care sites.
Companies valued at less than $10 billion are generally described as “mid-cap” stocks, and Henry Schein fits right into that category. The company operates in 33 countries and territories and provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes.
Shares of HSIC are trading 12% below their 52-week high of $82.63, which they hit on Feb. 27. The medical products distributor has gained 13.4% over the past three months, surpassing the broader SPDR S&P Health Care Services ETF’s (XHS) 6.3% return over the same time frame.
However, in the longer term, HSIC stock is down 4% on a YTD basis, lagging behind XHS’ nearly 7.8% gains. Moreover, shares of HSIC have declined marginally over the past 52 weeks, underperforming XHS’ 15.3% returns over the same time frame.
HSIC has been trading below its 200-day and 50-day moving averages since mid-September, which indicates its bearish trend.
On Aug. 6, shares of HSIC fell 8.1% following its Q2 earnings release, primarily due to the company’s lowered full-year 2024 earnings and revenues outlook, noting the challenging economic environment in certain markets and slower-than-expected recovery from the cyberattack faced by the company.
HSIC revenues of $3.14 billion in the period missed the consensus estimates of $3.28 billion, further dampening investor confidence. However, its adjusted earnings of $1.23 per share slightly surpassed the Wall Street estimates of $1.22. The company expects full-year earnings in the range of $4.70 to $4.82 per share.
HSIC has outpaced its rival, Patterson Companies, Inc. (PDCO), which declined 25.4% over the past 52 weeks and 22.6% on a YTD basis.
Given that HSIC outperformed its broader sector recently, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 13 analysts in coverage, and the mean price target of $73.33 suggests a marginal premium to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
