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DENTSPLY (XRAY) Renews Partnership with Pacific Dental


York, PA-based DENTSPLY SIRONA Inc. XRAY, a dental solutions company, recently announced that it has renewed its strategic partnership with Pacific Dental Services, LLC.

Stock Performance

The price performance of the stock has been unfavorable in the last three months. DENTSPLY SIRONA rose only 1.50%, underperforming the Zacks classified Medical/Dental-Supplies sub-industry’s gain of almost 7.54%. The current level compares unfavorably with the S&P 500’s return of 3.90% over the same time frame.

The estimate revision trend for the stock has been dismal, with 10 estimates moving south in the last two months and no estimate moving north. Notably, the current year estimate for the stock fell 2 cents to $2.83 per share over the same time frame.

Coming back to the news, the duo’s new agreement is for a period of five years. Per the agreement, DENTSPLY SIRONA will provide Pacific Dental Services and its network comprising more than 1,600 dentists with access to its range of consumables offering, marketing, sponsorship, and training opportunities. The agreement originally was signed between the two parties in 2012.

We feel the renewal of the agreement is a smart move on the part of DENTSPLY SIRONA as Pacific Dental network consists of over 580 centres in 17 states. Pacific Dental-supported offices have implemented the company’s CEREC technology system and are the world’s largest network of CEREC users. Management estimates that during the tenure of the present agreement, the number of such offices utilizing DENTSPLY SIRONA technologies could exceed 800.

Headquartered in York, PA, DENTSPLY SIRONA is a global leader in the design, development, manufacture and marketing of dental consumables, dental laboratory products, dental specialty products and consumable medical device products.

Zacks Rank & Key Picks

Currently, DENTSPLY SIRONA carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical sector include Inogen Inc. INGN, Luminex Corporation LMNX and IDEXX Laboratories, Inc. IDXX. Inogen and Luminex Laboratories sport a Zacks Rank #1 (Strong Buy), while IDEXX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock represents an impressive one-year return of 90.2%.

Luminex has a long-term expected earnings growth rate of 16.3%. The stock posted a positive earnings surprise of 237.5% in the last reported quarter.

IDEXX Laboratories has a long-term expected earnings growth rate of 19.37%. Additionally, the stock represents an impressive one-year return of 80.5%.

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