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

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 lower today making it today's featured Wholesale laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Henry Schein fell $1.30 (-1.7%) to $76.05 on average volume. Throughout the day, 569,689 shares of Henry Schein exchanged hands as compared to its average daily volume of 529,900 shares. The stock ranged in price between $75.65-$77.38 after having opened the day at $77.01 as compared to the previous trading day's close of $77.35. Other companies within the Wholesale industry that declined today were: China Metro-Rural Holdings ( CNR), down 7.4%, Universal Power Group ( UPG), down 6.4%, Navarre Corporation ( NAVR), down 5.6%, and Patterson Companies ( PDCO), down 4.9%.

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 18.9, above the average wholesale industry P/E ratio of 18.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 20.9% year to date as of the close of trading on Wednesday. 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 growth in earnings per share, revenue growth, notable return on equity, solid stock price performance and good cash flow from operations. 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).
null

If you liked this article you might like

Henry Schein: Cramer's Top Takeaways

Stocks Are Fighting Back: Cramer's 'Mad Money' Recap (Wednesday 8/9/17)

Analysts' Actions -- Lululemon, L Brands, Masco, Under Armour and More

End of Health-Care Bill Could Be a Win for Markets: Cramer's 'Mad Money' Recap (Friday 3/24/17)

Walmart, Nike, Henry Schein Set to Shine