Latest news with #XRAY
Yahoo
31-05-2025
- Business
- Yahoo
XRAY vs. COO: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Dentsply International (XRAY) or The Cooper Companies (COO). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits. Dentsply International and The Cooper Companies are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that XRAY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors. Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels. The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors. XRAY currently has a forward P/E ratio of 8.64, while COO has a forward P/E of 20.09. We also note that XRAY has a PEG ratio of 1.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. COO currently has a PEG ratio of 2.02. Another notable valuation metric for XRAY is its P/B ratio of 1.62. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, COO has a P/B of 1.96. These are just a few of the metrics contributing to XRAY's Value grade of A and COO's Value grade of C. XRAY has seen stronger estimate revision activity and sports more attractive valuation metrics than COO, so it seems like value investors will conclude that XRAY is the superior option right now. 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 DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report The Cooper Companies, Inc. (COO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
20-05-2025
- Business
- Yahoo
3 Healthcare Stocks Walking a Fine Line
From novel pharmaceuticals to telemedicine, most healthcare companies are on a mission to drive better patient outcomes. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand. The result? Over the past six months, the industry has tumbled by 6.4%. This performance was disappointing since the S&P 500 held its ground. A cautious approach is imperative when dabbling in these businesses as regulation is another unpredictable element that can affect their earnings potential. Taking that into account, here are three healthcare stocks we're swiping left on. Market Cap: $10.87 billion Founded in 2004 to address challenging medical conditions with significant unmet needs, Penumbra (NYSE:PEN) develops and manufactures innovative medical devices for treating vascular diseases and providing immersive healthcare rehabilitation solutions. Why Does PEN Fall Short? Modest revenue base of $1.24 billion gives it less fixed cost leverage and fewer distribution channels than larger companies Low free cash flow margin of 3% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders Negative returns on capital show that some of its growth strategies have backfired Penumbra is trading at $281.56 per share, or 70.3x forward P/E. Check out our free in-depth research report to learn more about why PEN doesn't pass our bar. Market Cap: $3.33 billion With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ:XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide. Why Do We Think XRAY Will Underperform? Weak constant currency growth over the past two years indicates challenges in maintaining its market share Sales were less profitable over the last five years as its earnings per share fell by 7% annually, worse than its revenue declines Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Dentsply Sirona's stock price of $16.72 implies a valuation ratio of 8.8x forward P/E. Dive into our free research report to see why there are better opportunities than XRAY. Market Cap: $868.7 million With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE:AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States. Why Do We Pass on AMN? Declining travelers on assignment over the past two years indicate demand is soft and that the company may need to revise its strategy Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment Shrinking returns on capital suggest that increasing competition is eating into the company's profitability At $22.17 per share, AMN Healthcare Services trades at 18.5x forward P/E. If you're considering AMN for your portfolio, see our FREE research report to learn more. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Yahoo
02-05-2025
- Business
- Yahoo
1 Unprofitable Stock Worth Investigating and 2 to Approach with Caution
Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth. A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. That said, here is one unprofitable company that could turn today's losses into long-term gains and two best left off your radar. Trailing 12-Month GAAP Operating Margin: -130% Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation. Why Are We Cautious About FCEL? Backlog growth averaged a weak 1% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy Free cash flow margin shrank by 73.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution FuelCell Energy's stock price of $4.04 implies a valuation ratio of 0.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than FCEL. Trailing 12-Month GAAP Operating Margin: -23.2% With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ:XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide. Why Should You Dump XRAY? Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn't resonate with customers Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 7.4% annually, worse than its revenue Negative returns on capital show that some of its growth strategies have backfired, and its falling returns suggest its earlier profit pools are drying up Dentsply Sirona is trading at $13.88 per share, or 7.3x forward P/E. If you're considering XRAY for your portfolio, see our FREE research report to learn more. Trailing 12-Month GAAP Operating Margin: -5.3% Founded to protect a tree-lined two-lane road, Montrose (NYSE:MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services. Why Could MEG Be a Winner? Market share has increased this cycle as its 24.4% annual revenue growth over the last five years was exceptional Offerings are difficult to replicate at scale and result in a stellar gross margin of 36.5% Incremental sales over the last two years have been highly profitable as its earnings per share increased by 48.7% annually, topping its revenue gains At $14.78 per share, Montrose trades at 17.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
3 Reasons to Avoid XRAY and 1 Stock to Buy Instead
Dentsply Sirona's stock price has taken a beating over the past six months, shedding 46.9% of its value and falling to $12.92 per share. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Dentsply Sirona, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it's free. Even with the cheaper entry price, we're swiping left on Dentsply Sirona for now. Here are three reasons why you should be careful with XRAY and a stock we'd rather own. With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ:XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide. We can better understand Dental Equipment & Technology companies by analyzing their constant currency revenue. This metric excludes currency movements, which are outside of Dentsply Sirona's control and are not indicative of underlying demand. Over the last two years, Dentsply Sirona failed to grow its constant currency revenue. This performance was underwhelming and implies there may be increasing competition or market saturation. It also suggests Dentsply Sirona might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Sadly for Dentsply Sirona, its EPS declined by 7.4% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). Dentsply Sirona's five-year average ROIC was negative 7.8%, meaning management lost money while trying to expand the business. Its returns were among the worst in the healthcare sector. Dentsply Sirona doesn't pass our quality test. After the recent drawdown, the stock trades at 6.8× forward price-to-earnings (or $12.92 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better stocks to buy right now. Let us point you toward the most entrenched endpoint security platform on the market. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
