Recent coverage has put Henry Schein (HSIC) in the spotlight after Zacks highlighted its strong value ratings and positive earnings outlook. This has drawn fresh attention from investors focused on potentially undervalued healthcare distributors.
Over the past month Henry Schein’s share price has slipped around 6.9%, even though the year-to-date share price return is up 8.9% and the 1-year total shareholder return of 29.2% points to longer term momentum that contrasts with this recent cooling.
Spot fresh ideas with similar value appeal by scanning our hand picked list of 29 high quality undervalued stocks, which share Henry Schein’s focus on fundamentals and pricing discipline.Bulls point to Henry Schein’s value grade and earnings outlook. Bears focus on the recent 6.9% pullback. The valuation work below shows which side the numbers currently support.
Most Popular Narrative: 15% Undervalued
Henry Schein's most followed narrative pegs fair value at $98.19, which sits above the last close of $83.66 and presents the recent pullback as a valuation gap rather than a broken story.
The analysts have a consensus price target of $98.19 for Henry Schein based on their expectations of its future earnings growth, profit margins and other risk factors.
However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $112.0, and the most bearish reporting a price target of just $64.0.
See why 6 investors see Henry Schein as 15% undervalued.
Result: Fair Value of $98.19 (UNDERVALUED)
Still, the Henry Schein story can unravel if scanner pricing pressure squeezes equipment margins or if the multi year analyst earnings path proves too optimistic.
Find out about the key risks to this Henry Schein narrative.
Next Steps
There is both optimism and concern around Henry Schein, leading to mixed feelings. Act promptly, review the full picture, and weigh the 3 key rewards and 1 important warning sign.
Looking for more Henry Schein style investment ideas?
If Henry Schein has sharpened your focus on disciplined pricing and fundamentals, do not stop here. Broaden your watchlist now so you are not reacting after the next move.
- Target steady compounding potential by scanning dividend payers that aim to balance income and resilience through the 7 dividend fortresses.
- Zero in on financial strength first and stress test your portfolio against weaker peers using the list of solid balance sheet and fundamentals (25 results).
- Get ahead of the crowd and hunt for under-the-radar opportunities with the 20 high quality undiscovered gems.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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