Patterson Companies, Inc. (NASDAQ: PDCO) is well poised for growth in the coming quarters, courtesy of its broad product line. The optimism, led by a strong performance of certain business segments during first-quarter fiscal 2024 and a few notable acquisitions, is expected to contribute further. Integration risks and stiff competitive forces persist.
Shares of this Zacks Rank #3 (Hold) company have lost 24.6% in the past year compared with the industry's 6.1% decline. The S&P 500 Index has increased 5.9% during the same time frame.
The renowned global dental and animal health company has a market capitalization of $1.82 billion. It projects 5.9% growth for the next five years and expects to maintain its strong performance going forward. Patterson Companies' earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 10.78%.
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Let's delve deeper.
Upsides
Broad Product Spectrum: We are optimistic about Patterson Companies' wide range of consumable supplies, equipment and software, and value-added services. A notable offering from PDCO is a private-label brand named Pivotal. It continues to add stock-keeping units to its broader private-label portfolio. The company's NaVetor is an integrated cloud-based veterinary practice management software for its Animal Health segment.
In June, PDCO launched new integrations for DentalXChange to provide additional electronic insurance processing and electronic patient statement solutions. In May, it announced a new product, Patterson CarePay+, to provide dental offices with software solutions for patient financing, dental insurance plans and payment processing.
Acquisitions & Alliance: We are upbeat about PDCO's strategy of expanding its business via strategic acquisitions. In July, Patterson Dental ...
