On Mar 07, 2014, we issued an updated research report on
Henry Schein Inc.
), a leading distributor of health care products and services
across the globe. Despite challenging economic conditions, a
competitive environment and currency headwinds, Henry Schein
managed to post solid fourth-quarter 2013 results with both its
top and bottom line steering ahead of the respective Zacks
The year-over-year growth at both fronts is also indicative of
the company's consistent growth via organic and inorganic means.
We are, at the same time, encouraged by the global performance of
the company during the fourth quarter. The stock currently
carries a Zacks Rank #3 (Hold).
Henry Schein's adjusted EPS of $1.43 in the fourth quarter of
2013 increased 13.5% year over year beating the Zacks Consensus
Estimate by 2.9%. Revenues rose 4.9% to $2.53 billion, exceeding
the same benchmark by $1 billion.
Henry Schein is well positioned to gain from its extensive
global foothold and diverse channel mix. Favorable market
dynamics is a major growth catalyst going forward. We believe
that high-growth avenues like the animal health market should
benefit Henry Schein's growth profile. We are also encouraged to
find that in spite of the austerity measures in Europe, Henry
Schein continues to garner market share in the Dental
In addition, the company's acquisition strategy helps it to
pursue targets that provide access to additional product lines.
In a bid to expand its dental group in Europe, in Feb 2014, Henry
Schein acquired four distributors serving dentists and dental
laboratories in France, the Netherlands and Belgium, from a Dutch
company, Arseus NV. Earlier, in January, the company also
took over a French dental practice management software company
from Arseus. According to Henry Schein, these businesses will
strengthen its European Dental and Technology operations going
However, on the flip side, the European economy and
macroeconomic uncertainty remain as overhangs. Intense
competition and currency headwinds warrant further caution.
Moreover, as group purchasing organizations (GPO) gain
prominence, pricing pressure is inevitable.
Other Stocks to Consider
Some better-ranked medical devices stocks that are worth a
Align Technology Inc.
CR Bard Inc.
Becton, Dickinson and Company
). All the three stocks carry a Zacks Rank #2 (Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis
BARD C R INC (BCR): Free Stock Analysis
BECTON DICKINSO (BDX): Free Stock Analysis
HENRY SCHEIN IN (HSIC): Free Stock Analysis
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