Zacks Industry Outlook Becton, Dickinson, BD, McKesson, Cardinal Health and Merit Medical Systems

Industry Overview - The Zacks Medical - Dental Supplies industry is experiencing a consolidating trend in 2024, with stable dental patient traffic but a decline in discretionary spending on higher-cost procedures, impacting consumables demand [2][3] - The global dental industry is projected to reach $95.37 billion at a CAGR of 11.8% from 2023 to 2032, indicating potential growth opportunities for industry participants [3] - The industry consists of companies that design, develop, manufacture, and market dental products, including consumables and specialty items, and has shown recovery post-pandemic [4] Major Trends - The increasing burden of oral diseases and an aging population are driving the dental equipment market, with 55.8 million people aged 65 and above in the U.S. as of 2020, leading to higher demand for dental services [6] - There is a growing demand for esthetic and cosmetic dentistry, influenced by media and current trends, which is boosting the U.S. dental equipment market [7] - Technological advancements such as digital imaging and laser dentistry are enhancing treatment accuracy and effectiveness, contributing to market growth [8] Industry Performance - The dental supplies industry has underperformed compared to the broader medical sector and the S&P 500, with a collective gain of 4.2% over the past year, while the S&P 500 increased by 29.1% [12] - The industry is currently trading at a forward P/E of 17.3X, lower than the S&P 500's 22.6X and the sector's 21.2X, indicating a relatively undervalued position [13] Company Highlights - Cardinal Health (CAH) is experiencing strong demand for its Pharmaceutical and Specialty solutions, with expected EPS for fiscal 2025 in the range of$ 7.75- $7.90, reflecting growth from previous estimates [17][18] - Merit Medical Systems (MMSI) is seeing revenue growth across its segments, with projected total revenue growth of 6.9-7.6% for 2024 and an adjusted EPS range of$ 3.33- $3.38 [22][23] - Becton, Dickinson and Co. (BD) reported solid top-line results with expected adjusted EPS for fiscal 2025 in the range of$ 13.05- $13.15, indicating a year-over-year improvement [27][28] - McKesson is experiencing significant growth driven by its U.S. Pharmaceutical segment, with adjusted EPS guidance raised to$ 32.40-$33.00 for fiscal 2025, representing an 18-20% growth from the prior year [32][33]