When Should You Buy DENTSPLY SIRONA Inc. (NASDAQ:XRAY)?

While DENTSPLY SIRONA Inc. (NASDAQ:XRAY) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$42.39 at one point, and dropping to the lows of US$34.33. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether DENTSPLY SIRONA's current trading price of US$37.66 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at DENTSPLY SIRONA’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for DENTSPLY SIRONA

Is DENTSPLY SIRONA Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 15% below my intrinsic value, which means if you buy DENTSPLY SIRONA today, you’d be paying a fair price for it. And if you believe the company’s true value is $44.44, then there’s not much of an upside to gain from mispricing. In addition to this, DENTSPLY SIRONA has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from DENTSPLY SIRONA?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of DENTSPLY SIRONA, it is expected to deliver a relatively unexciting top-line growth of 5.2% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in XRAY’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on XRAY, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in DENTSPLY SIRONA, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.