Henry Schein Inc. (HSIC): Today's Featured Wholesale Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Henry Schein ( HSIC) pushed the Wholesale industry higher today making it today's featured wholesale winner. The industry as a whole closed the day up 0.3%. By the end of trading, Henry Schein rose $1.01 (1.3%) to $77.78 on light volume. Throughout the day, 170,057 shares of Henry Schein exchanged hands as compared to its average daily volume of 529,900 shares. The stock ranged in a price between $76.58-$77.86 after having opened the day at $76.81 as compared to the previous trading day's close of $76.77. Other companies within the Wholesale industry that increased today were: China Auto Logistics ( CALI), up 23.1%, Rada Electronics Industries ( RADA), up 5.9%, SED International Holdings ( SED), up 5.1%, and Coast Distribution System ( CRV), up 3.7%.

Henry Schein, Inc. distributes healthcare products and services primarily to office-based healthcare practitioners. It operates in two segments, Healthcare Distribution and Technology. Henry Schein has a market cap of $6.82 billion and is part of the services sector. The company has a P/E ratio of 18.7, equal to the average wholesale industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 19.2% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Henry Schein a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Henry Schein as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, solid stock price performance, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).
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