Published on 27 Dec 2021 on Zacks via Yahoo Finance

Here's Why You Should Retain Patterson Companies (PDCO) Stock

Patterson Companies, Inc. PDCO is well-poised for growth backed by strength in dental segment and strong prospects in Animal Health. However, rising operating expenses remain a concern.Shares of this Zacks Rank #3 (Hold) company lost 2.6% against the industry’s growth of 14.9% on a year-to-date basis. The S&P 500 Index has rallied 26.9% in the same time frame.Patterson Companies — with a market capitalization of $2.81 billion — is one of the leading distributors of dental and animal health products. It anticipates earnings to improve 9.9% over the next five years. The company has a trailing four-quarter earnings surprise 3.7%, on average.

Key Catalysts

Patterson Companies is expected to benefit from gradual recovery in the dental market and rebounding dental equipment business (especially in North America), supported by increased technology marketing/promotional activities.Per management, the company remains optimistic about serving a strong and stable dental end market.Per management, in the second-quarter fiscal 2022, sales at this segment dipped 1.5% year over year but surpassed its own expectations for the quarter. The reported figure improved 10% compared with the pre-pandemic period (two years back). Throughout the Dental segment, the company’s field sales, service and support teams remain focused on delivering value to its customers and business partners, thereby driving solid operational excellence.