Patterson Cos. outperforms market with 5.96% rise in past month

Medical supplies manufacturer Patterson Cos. has seen a significant outperformance in its stock value over the past month, with a 5.96% rise, surpassing both the Medical sector’s 0.3% gain and the S&P 500’s 3.08% increase. This recent surge occurred despite a 1.7% dip in the company’s shares in its latest trading session, closing at $30.60, which was less than the S&P 500’s daily gain of 0.18%. The Dow and Nasdaq also experienced increases, rising by 0.1% and 0.3%, respectively.

Looking ahead, Patterson’s financial results forecast an earnings per share (EPS) of $0.59 for the upcoming quarter, reflecting a decrease of 6.35% from the same quarter last year. However, the company’s expected revenue is projected to reach $1.71 billion, marking a 4.88% rise from last year.

For the full year, Zacks Consensus Estimates predict an EPS of $2.50 and revenue of $6.73 billion, representing respective increases of +3.31% and +3.97% from the previous year.

In terms of operational ratings, Patterson currently holds a Zacks Rank of #2 (Buy). This ranking system reflects short-term business trends and analyst estimates and is known for its impressive track record of outperformance, with stocks ranked #1 yielding an average annual return of +25%. A recent 0.05% increase in the Zacks Consensus EPS estimate further indicates optimism about Patterson’s business outlook.

InvestingPro Insights

Patterson Cos. has exhibited some noteworthy trends and data points according to InvestingPro. The company’s management has been aggressively buying back shares, indicating their confidence in the firm’s future performance. Additionally, the company has a history of high return on invested capital and consistently increasing earnings per share, which are positive signs for potential investors.

InvestingPro Data reveals an adjusted market cap of 2930M USD and a P/E ratio of 13.96 as of Q1 2024. The company also shows a revenue growth of 1.83% over the last twelve months as of Q1 2024 and a gross profit margin of 21.15%.

However, investors should be aware of potential challenges. The company has been flagged for poor earnings and cash flow which may force dividend cuts, and 8 analysts have revised their earnings downwards for the upcoming period. Despite these potential concerns, Patterson Cos. has maintained dividend payments for 14 consecutive years, and analysts predict the company will be profitable this year.

For those seeking more comprehensive insights, InvestingPro offers a total of 14 additional tips for Patterson Cos. These include a range of key metrics and trends to further inform investment decisions.

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