Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 29 May, 26 | HSIC | Buy | USD 76.32 | USD 80.2 | USD 84.0 | 27 days | Closed |
10.57%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Henry Schein, Inc. provides health care products and services to dental practitioners, laboratories, physician practices, and ambulatory surgery centers, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services. The Health Care Distribution segment offers dental products, including infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, personal protective equipment, and high-tech and digital restoration equipment, as well as equipment repair services. This segment also provides medical products, such as branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, and vitamins. The Technology and Value-Added Services segment offers software, technology, and other value-added services that include practice management software systems for dental and medical practitioners; and value-added practice solutions comprising practice consultancy, education, revenue cycle management and financial services, e-services, practice technology, and network and hardware services, as well as consulting, and continuing education services. Henry Schein, Inc. was founded in 1932 and is headquartered in Melville, New York.
Growth in Gross Profit: USD 1,070 Mn in Q1FY26 vs USD 1,000 Mn in Q1FY25
Increase in Total Net Sales: USD 3,368 Mn in Q1FY26 vs USD 3,168 Mn in Q1FY25
Decrease in Operating Cash Flow: Negative USD 97 Mn in Q1FY26 vs Positive USD 37 Mn in Q1FY25
Reduction in Operating Margin: 5.41% in Q1FY26 vs 5.53% in Q1FY25
Henry Schein faces risks from healthcare market competition, supply chain disruptions, dependence on third-party suppliers, execution challenges related to value-creation initiatives and acquisitions, cybersecurity threats, foreign exchange fluctuations, and evolving global trade and regulatory environments
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 76.32 | 69.0 | 80.2 | 84.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Growth and Market Share Expansion: Henry Schein delivered a strong start to FY26, reporting total net sales of USD 3.37 billion in Q1FY26, reflecting a 6.3% year-over-year increase. Growth was supported by internal sales expansion, acquisitions, and favorable foreign exchange movements. The company continued gaining market share across dental, medical, specialty products, and technology segments, demonstrating resilience across its diversified healthcare solutions platform.
Strength in Dental, Specialty, and Technology Businesses: The company recorded robust growth across key operating segments. Global Dental Distribution merchandise and equipment sales increased by 9.0% and 8.6%, respectively, while Global Specialty Products and Global Technology sales rose 8.1% and 7.0%. Continued adoption of cloud-based software solutions, strong dental equipment demand, and growth in value implants supported operational momentum.
Margin Expansion and Earnings Improvement: Henry Schein continued to enhance profitability through gross margin expansion and operational efficiencies. Adjusted EBITDA increased 11.6% year-over-year to USD 289 million, while non-GAAP diluted EPS grew 14.8% to USD 1.32. The company benefited from improved operating leverage, disciplined expense management, and value-creation initiatives that contributed to stronger earnings performance.
Strategic Investments and Capital Allocation: During the quarter, Henry Schein strengthened its implant business by acquiring a controlling interest in its S.I.N. distributor in the United States. The company also maintained shareholder-friendly capital allocation, repurchasing approximately 1.6 million shares for USD 125 million while retaining USD 655 million of authorization for future buybacks, reflecting confidence in long-term value creation.
Positive Outlook Supported by Value-Creation Initiatives: Management reaffirmed FY26 guidance, expecting sales growth of 3%–5%, mid-single-digit Adjusted EBITDA growth, and non-GAAP diluted EPS between USD 5.23 and USD 5.37. The company remains committed to delivering more than USD 200 million of operating income improvement over the coming years, including a USD 125 million run-rate by the end of 2026, supporting sustainable earnings growth.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Henry Schein, Inc. (NASDAQ: HSIC) at the closing market price of USD 76.32, as on 28 May,2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Medical Distribution
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| HSIC Henry Schein Inc |
-0.57 0.66% | 85.63 | 24.12 | 14.04 | 0.74 | 2.50 | 0.95 | 13.33 |
| COR Cencora Inc. |
-0.14 0.05% | 303.85 | 37.46 | 17.70 | 0.19 | 31.84 | 0.20 | 17.10 |
| MCK McKesson Corporation |
-5.49 0.66% | 825.97 | 17.95 | 14.53 | 0.20 | 5.04 | 0.22 | 12.17 |
| CAH Cardinal Health Inc |
0.31 0.14% | 226.06 | 29.48 | 17.92 | 0.20 | 16.07 | 0.22 | 15.67 |
| SHPMF Shanghai Pharmaceuticals Holding Co. Ltd |
- -% | 1.46 | 7.71 | 5.45 | 0.03 | 0.57 | 0.03 | 0.88 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on May 29, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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