Dental Space is gaining ground in 2021: 4 stocks to invest in – July 8, 2021
Dental stocks are getting a lot of attention after a 2020 pandemic. This sub-sector, which mostly falls into the broader category of MedTech, has been in the center of attention again since the start of 2021, with patients gradually returning for receive dental services. The gradually resuming practices are once again attracting patients, who had refrained from using services for fear of being infected with the virus.
Dental practices that are gaining in importance today are general dentistry, oral surgery, orthodontics and prosthodontic services. While primarily non-essential in nature, the limited scope of postponing critical services such as endodontic treatments for cavities has resulted in huge pent-up demand in the market after months of suppressed dental office visits. This is expected to further stimulate the dentistry market in the coming months.
With dentistry resuming services and patients resuming services, now is the right time for investors to place their funds with major dental players. With upside potential on this front, investors can safely place their bets on these players to reap long-term returns.
Let’s dig deeper.
Dentistry is gaining ground
After a lukewarm year 2020, the dental space has received a lot of attention recently with a gradual resumption of services. Interestingly, the dental sector even secured a spot in the government’s fiscal allocation for fiscal year 2022. The budget aims to improve access to dental coverage in Medicare, making it easier to access and maintain coverage. by Medicaid for eligible people. Medicare does not currently cover dental cleanings or root canal services.
According to a report by The Business Research Company, the global dental services market which was worth $ 365.6 billion in 2020 is expected to grow to $ 551.9 billion in 2025 at a CAGR of 8.6%. The market is expected to benefit from a significant surge in pent-up demand brought on by the pandemic, when the availability of services has been significantly delayed with technological advancements in the field.
Realizing the potential of the dental space, key players such as Patterson Companies, Inc. (PDCO – Free Report) strengthen their presence in the niche. The company reported strong results for the fourth quarter of fiscal 2021, in part due to the strength of its dental business. Patterson’s dental equipment and software and consumables sub-segments also experienced impressive growth.
4 dental stocks to buy
Here we have selected four dental stocks from the MedTech space, which have been very active on this front and have recorded impressive performances lately. All companies carry a Zacks Rank # 2 (Buy). You can see The full list of today’s Zacks # 1 Rank (Strong Buy) stocks here.
A pillar of MedTech Henry Schein, Inc. (HSIC – Free Report) acquired in June a majority stake (70%) in eAssist Dental Solutions (eAssist). In May, Henry Schein’s subsidiary Henry Schein One acquired a controlling stake (80%) in Jarvis Analytics, a software company that develops comprehensive business analysis tools to help dental practitioners use data for diagnose problems, strengthen decision making and improve business. performance.
Its long-term expected earnings growth rate is set at 11.2%. The company is expected to post profit and revenue growth of 35.7% and 15.9% in 2021, respectively. Since the start of the year, the stock has gained 14.7% compared to the industry’s 10.6% increase.
Renowned supplier of the Invisalign system of transparent aligners, Align Technology, Inc. (ALGN – Free Report), announced the new version of iTero Workflow 2.0 software with advanced features in June. The software provides enhanced intraoral image sharpness for clearer details on hard and soft tissue to aid in treatment diagnosis, while improving practice efficiency, patient engagement and experience. more transparent end-to-end digital processing. In April, the company extended its relationship with DECA Dental Group and signed a new multi-year agreement for the Invisalign system until early 2025.
Its long-term expected earnings growth rate is set at 23.2%. The company is expected to post earnings and revenue growth of 100.6% and 53.4% in 2021, respectively. Since the start of the year, the stock has gained 14.6% compared to the industry’s 10.6% increase.
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Straumann Holding AG (SAUHF – Free Report) is a recognized player in dental replacement and orthodontic solutions. The company released its first quarter 2021 results in April, when it recorded solid organic growth. The company also recorded strong double-digit organic growth in all regions, led by EMEA and North America.
Its long-term expected earnings growth rate is set at 11%. The company is expected to post earnings and revenue growth of 72.7% and 30.8%, respectively. Since the start of the year, the stock has gained 40.1% compared to the industry’s 10.6% increase.
Renowned manufacturer of professional dental products and technologies, DENTSPLY SIRONA Inc. (RADIOGRAPHY – Free Report), in June, announced that it had acquired substantially all of the assets of Propel Orthodontics, which includes the VPro device and the Fastrack mobile app. DENTSPLY SIRONA reported strong results for the first quarter of 2021 in May, when it also saw strong organic revenue growth.
Its long-term expected earnings growth rate is set at 21.5%. The company is expected to post earnings and revenue growth of 59.8% and 27% in 2021, respectively. Since the start of the year, the stock has gained 21.5% compared to the industry’s 10.6% increase.
5 actions in the process of doubling
Each has been selected by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2020. Each comes from a different industry and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stock in this report is flying under Wall Street’s radar, which provides a great opportunity to get into the ground floor.
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