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 up 0.7%. By the end of trading, Henry Schein fell $0.91 (-1.0%) to $89.81 on heavy volume. Throughout the day, 775,561 shares of Henry Schein exchanged hands as compared to its average daily volume of 391,900 shares. The stock ranged in price between $88.90-$91.44 after having opened the day at $91.19 as compared to the previous trading day's close of $90.72. Other companies within the Wholesale industry that declined today were: Armco Metals Holdings ( CNAM), down 7.7%, United Stationers ( USTR), down 7.5%, InfoSonics Corporation ( IFON), down 3.3% and China Metro-Rural Holdings ( CNR), down 3.2%.
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Henry Schein, Inc. distributes health care products and services primarily to office-based dental, medical, and animal health care practitioners. It operates in two segments, Health Care Distribution and Technology and Value-Added Services. Henry Schein has a market cap of $8.0 billion and is part of the services sector. The company has a P/E ratio of 20.6, above the S&P 500 P/E ratio of 17.7. Shares are up 13.7% year to date as of the close of trading on Monday.

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

On the positive front, Lawson Products ( LAWS), down 4.3%, Anixter International ( AXE), down 4.2%, Aegean Marine Petroleum Network ( ANW), down 4.2% and Beacon Roofing Supply ( BECN), down 3.9% , were all gainers within the wholesale industry with Omnicare ( OCR) being today's featured wholesale industry leader.

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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